Prime London rent hits double-digit growth for first time since 2010
The priciest areas to rent in London have seen double-digit annual rental growth for the first time in more than a decade.
According to figures released by Savills, growth in prime London hit 11.1 per cent in the first quarter of this year, against a backdrop of low stock levels.
It is the first time rental growth has reached this level since September 2010.
Prime London covers the City of Westminster and the Royal Borough of Kensington and Chelsea, and parts of the boroughs of Hammersmith and Fulham, and Camden.
Soaring demand for London rental space has meant rental prices for both houses and flats in the capital are above pre-pandemic levels.
Stock levels have also been subdued, with some 64 per cent of agents surveyed by Savills reporting that the number of available homes had fallen in the past three months.
The property firm has estimated that one third of deals led to competitive bidding over the last quarter, with buyers keener than ever to find a house with green space amid the pandemic.
Frances Clacy, research analyst at Savills, said: “The return of office workers, international students and corporate relocation has seen demand for rental properties rocket over the past few months. Coupled with some landlords selling up in the face of regulatory changes and an improving sales market, the lack of stock is stark, pushing up competition and prices across the board.
“Not only does this mean prospective tenants have to look across multiple locations to secure a property, in many cases, rental properties are being let even before they are advertised.”