Nick Millican on the 3 Factors Driving Rent Prices in London
Nick Millican on the 3 Factors Driving Rent Prices in London
The price of rent in London is out of control and has been since the pandemic. However, property investment expert Nick Millican has noticed that things are changing and that prices aren’t increasing as much this year as they have been in past years. This all comes down to three factors which are influencing the rent prices in London and how they interact with one another.
- The Pandemic Ended
When the pandemic ended, workers were encouraged to come back to their offices by their employers, as real estate agent Nick Millican assures. This meant that more people would need to find places to live in urban areas in London. More people means more demand, but that’s not the full story.
- The London Housing Crisis
This demand for living space also drove up the price of homes in London. This meant that many people could not afford to buy a home and instead were stuck looking to rent which in turn drove up the price of rent.
With the pandemic winding down, more people were traveling to London, Nick Millican comments. This included university students who needed a place to stay. Unfortunately, estimates state that the whole average rental price for students is 150 times greater than what they are provided by university maintenance loans.
Putting it All Together
Putting all of the data together, Nick Millican has discovered that it has created a volatile rental and housing market with each influencing the other. This means that in addition to the supply and demand concerning rent, the status of the housing market must also be taken into consideration when discussing what drives rental prices. Moving forward, things should be less volatile but the future remains uncertain.