Tenants in London looking for a bigger home will find rents are around 42% higher for each additional room, new research has found.
With the cost of home ownership in London out of reach for many, tenants are often left with little choice but to upsize within the rental market to a larger property.
On average across London, the jump to increase your rental potential and upgrade your property size is 42% for each room added, according to the research from online lettings platform Urban.
The largest leap in rents is for those moving from a two bedroom rented home to a three bedroom property with a rise of 53% and overall Fitzrovia has the highest leap at 184% and the highest difference between a one and two bed property at 194%.
On average, from a studio to a one bedroom and a one bedroom to a two bedroom requires a 35% and 37% increase respectively. Going from a studio flat to a four bed property would result in a 296% increase in rent.
The second biggest rise is in Oxford Circus at 182% per additional room, followed by Croydon at 160%, Westminster at 148% and Bank at 140%, the research also shows.
Highgate has the largest jump between a studio and a one bedroom home at 215%, followed by Soho at 179% while the biggest difference between a two bedroom and three bedroom home is in Westminster with an increase of 456%, followed by Croydon at 297%. Green Park, Piccadilly Circus and Covent Garden also amongst the highest in this category.
For three to four bedrooms the most expensive locations are Bank, Oxford Circus, Fitzrovia and Hampstead and for those moving from a studio to a four bedroom property the steepest rise is in Highgate at 1,090%.
‘A lack of affordable housing is not only inflating the cost of homeownership in the capital, it’s also pushing rental prices ever higher as consistent and increasing levels of demand exceed the supply of homes available. A consequence of this is that not only are many left stuck in the rental sector, but the additional hurdles of upsizing within it are becoming increasingly expensive,’ said Urban director of lettings Adam Male.
‘With an average increase of 42% per room, it is not as easy as simply making the move as this additional cost has to be considered and compiled before doing so. When you couple this with extortionate fees charged by high street letting agents, it’s no wonder many are forsaking the capital for more affordable rental options in the surrounding areas,’ he added.