• October 5, 2025

Nick Millican Believes That Tenant Affordability Can Hardly Keep Up with Double-Digit Rent Increases Every Year in London

Although London rental prices have reached a new all-time high, in 2024, they will rise more slowly, as real estate expert Nick Millican shares. In the latter quarter of 2023, the average monthly rent that was being demanded in London hit a record of £2,631 per month. The final three months of last year saw the lowest quarterly increase in asking rentals since 2019.

 

Thus, it is suggesting that the rate of rent increase is decreasing. The increase was only 0.2%, Nick Millican adds. Additionally, there have been indications that an increasing number of tenants are reaching their financial constraints; just 23% of rental units required a decrease in the advertised rent, up from 16% a year earlier. 

 

An improvement in the demand and supply balance in the rental market is one of the primary causes of the slowdown in rent increases and the expectation of a further rent reduction in 2024. Tenant affordability cannot keep up with double-digit rent increases annually, Nick Millican shares, and rent increases will be much more modest in 2024. 

 

The market remains very active, and the problem is compounded by some landlords quitting the market. Prices appear to be plateauing now that there are more alternatives, with tenants either growing more price-conscious or simply reaching the top point of what they are able to afford. Particularly for larger houses, Nick Millican informs, prices are starting to decline until the landlord takes an offer.

 

Through his insights and as a well-known real estate expert, Nick Millican suggests that some tenants are also inclined to stay unless necessary because they fear that they will incur greater rent elsewhere if they go. Some, on the other hand, would want to relocate, but they are unable to do so because their rent is less than market value, and the difference in cost for a larger home prevents them from doing so.