Stratford and Nine Elms enjoy rental market bounceback amid stock lows
London areas to have enjoyed an especially strong post-pandemic comeback include Battersea/Nine Elms and Canary Wharf.
Alongside Kensington, Stratford and Canada, these areas have marked 7.5% average growth in rental prices.
Growth from pre-pandemic levels has ranged from 5.8 per cent to 8.8 per cent, according to research from JLL.
The research looked at 100 properties in the five areas and tracked rents across the course of the pandemic.
Across the five markets, there was a 3.6 per cent dip in prices between pre-pandemic levels and the peak of the pandemic.
Recent demand has been driven by young professionals returning to the city for office jobs. Universities restarting face-to-face teaching has also driven growth, as have eased travel restrictions.
“After an initial difficult period for London’s residential rental market in early 2020, our research shows the recovery is showing a strong bounce back in London’s core markets, even exceeding pre-pandemic levels, JLL senior research analyst, Meg Eglington, said.
“This is in part due to the UK’s vaccination programme which has allowed local economies to re-open. Looking ahead to the next 12-24 months, international renters are likely to be most influential for market performance.”
Properties in other parts of London had been hit by greater rental declines and subsequently bounce backs of circa 20 per cent either way, JLL added.
“Declines were typically driven by government restrictions and uncertainty,” Charlotte Russell, area director of residential lettings at JLL added.
There have been warnings of a shortage of rental stock in the capital after renters returned to the capital in droves.
“Now, the shortage of supply is further pushing rental values to levels higher than those seen pre-pandemic, in some cases as high as 50 per cent. We have never seen such a shortage of available rental properties across central London, which will continue to be an ongoing issue throughout 2022,” Russell said.
Properties in the city are typically let within three to seven days, with increased rents, JLL said.