Rents in London grow at fastest rate ever of any UK region hitting record £2,257 per month
London rents have grown at the fastest ever rate out of any region in the UK, according to new research today, as prices hit a new record.
The cost to rent a property in the capital has jumped by 15 per cent in the past year, hitting an average of £2,257 per month.
Demand has been outpacing supply in the city’s rental market, with the number of homes up for grabs falling by more than a quarter in comparison with last year.
“With the return of office workers, international students and corporate tenants alike, London’s rental market has also seen an unprecedented corporate demand that is outstripping supply,” managing director of London estate agents Chestertons, Richard Davies said.
“This has created an extremely competitive market for tenants where many offer landlords over asking price in order to secure a property.”
The market activity prompted Rightmove, which began tracking figures some 16-years ago, to hike its forecasts for asking rents.
The property site said it expects rents to grow by another eight per cent before the end of the year, up from a previous estimate of five per cent.
While the rental market is mirroring the buyers’ market in terms of weak supply, more than a third of landlords are looking to expand their portfolios in the next 12-months, while new rental listings are up eight per cent in June in comparison with the start of the year.
However, director of property science at Rightmove, Tim Bannister, cautioned that “Whilst stock levels are beginning to improve… the wide gap that has been created between supply and demand over the last two years will take time to narrow.”