As experts in the real estate industry, the reliable and successful Greycoat Real Estate Agency has noticed some interesting facts concerning the rising rent prices in London. While prices are still going up, we have already passed what people like to call the “affordability ceiling” which says that renters can’t afford to pay more than 30% of their income on housing. This has created an uncertain future for both renters and landlords within the city.

Extremely Unaffordable

Estimates calculate that London renters are paying 42.5% of their income on rent which is far past the stated 30% affordability limit. Even worse is the fact that rent is still going up, although a little bit slower than in the past. Greycoat Real Estate sees that renters have completely lost the ability to bid upwards and that this could lead to unpredictable results.

Investors Replacing Landlords?

Another thing that Greycoat Real Estate has noticed is that individual landlords are leaving the industry and are quickly being replaced by investors. By buying up apartments and homes, banks and investment funds can secure long-term revenue streams for their investors. However, this isn’t exactly good news for renters as two out of five of them expect to need financial assistance from their parents and many aged 25 to 25 are thinking about leaving London for good.

Rent Continues to Rise

Throughout all of this chaos, there is one constant: rent is still going up, Greycoat finally states. We’ve already gone past what is considered the affordability limit so it is only a matter of time before we get to the point where renters simply can’t pay. Only time will tell what impact this will have on the market.