People asking for apartments in London have set the market price to £2,631, as real estate expert Nick Millican comments. This information on the housing market was established for the final quarter of 2023 on the authority of more recent research.
This index is set by Rightmove which further notes that an average of 11 renters ask per apartment. The rise in demand was a phenomenon specific to 2023, and further housing demand increases may be as little as 0.2 percent. For Nick Millican, this was the average rise in the last few months of 2023.
Factors ranging from inflation to people wanting to escape the metro area affect the asking prices. Apartment prices in London are high enough to squeeze most wages. As many as 23 percent of renters may need lower rent prices. In 2022, Nick Millican adds, rent prices were cheap enough that only 16 percent of renters complained about the mismatch concerning their wages.
Rent is going up all over England. The average monthly payment is expected to increase 5 percent in 2024 for cities outside of London while the metro itself will only grow 3 percent. Rightmove interpreted the slow demand growth as being influenced by the pandemic season with major cities being associated with congestion and infection. Nick Millican adds that in previous years, prices for rent spiked by double digits because of a more robust economic situation.
Since commodity inflation tends to be unsustainable, a slowdown without a downturn has been the result, Nick Millican finally states. Some landlords have left the market, meaning that they either sold their holdings and they have become unavailable or else are in someone else’s portfolio. On the whole, people are just pinching their pennies, and demand for high-end apartments has declined considerably.