Camden and Chelsea among London areas to see biggest rent increases
Average London rents are predicted to grow 14 per cent over the next five years, according to data exclusively shared with CityA.M.
Desirable areas including Kensington and Chelsea, Canada, Camden and Hammersmith and Fulham saw the largest rental increases, with prices jumping around a third for each borough.
Data from CBRE found that all 33 London boroughs have experienced rental growth over the last five years.
Its latest London Borough Property report also found that the average house price in London hit £516,285 in 2021, with a 19 per cent growth expected over the next five years.
Scott Cabot, head of residential research at CBRE said “Despite the uncertainties that the London residential sector faced due to the pandemic, the rental growth figures that we have seen over the past five years confirm the general strength of the market.
“We have seen a strong start to 2022 as workers return to the office, and we anticipate particularly strong demand in the London rental market this year.”
The disappearance of Covid restrictions has seen prices soar, with the average weekly rent now standing at £751, according to figures from elsewhere.
Data from estate agency Chestertons has found that the average rent has soared 21 per cent since 2020 when the average cost for renters was £589.
Demand has increased thanks to renters returning to the city for office jobs as well as the return of corporate tenants looking in pricier areas like Mayfair.
A squeeze on available properties to rent has also pushed up prices, the estate agency said.
Chestertons said its 31 branches saw a lift in tenant enquiries of 51 per cent in January compared to January 2021.
At the same time, the number of new rental homes coming onto the market decreased by 25 per cent.
There was also a 19 per cent boost in the number of tenants renewing their current rental agreement.
London rents have rebounded after many landlords slashed their prices in order to fill rooms after many people left the capital during the various lockdowns to stay with family.
Richard Davies, Chestertons’ head of lettings, said: “Tenants who secured a property at a discounted rental rate during the pandemic are keen to hold on to this deal as long as possible, particularly in the face of rising living costs. With the return of office workers, international students and corporate tenants alike, London’s rental market has seen unprecedented demand that is outstripping supply.”
Hot competition for London properties has meant that many potential tenants have started to offer landlords more rent than is being asked for in a bid to secure a place to live in the capital, Davies added.
It comes as many Londoners are battling a looming cost of living crisis with energy bills set to rocket 54 per cent this spring.