Even though there has been a considerable amount of focus on the property market of late, the London rental market has also been extremely busy. If you are looking to stay up to date with what is happening in the London rental market, Stones Residential is here to assist you.
London rents have risen
The HomeLet analysis, when including the London rental market, shows average rents standing at £981; which is a 2.9% rise on the previous year. Nine of the 12 regions monitored by HomeLet experienced a year-on-year increase in rental values between January 2020 and January 2021.
When you exclude the London rental market, average rents have risen to £839, which is a 5.8% increase on this time last year.
The area which saw the largest increase was the South West, and this was the case for the fifth month in a row. The increase was 8%. Rents in London are falling year on year, with a 3.9% fall between January 2020 and January 2021.
Rental values have fallen
11 of the 21 London boroughs reviewed by HomeLet experienced a year-on-year decrease in rental values. In January 2021, the average tenancy stood at two years and nine months, which is slightly higher than the January 2020 figure, which was two years and eight months.
Andy Halstead, HomeLet CEO, comments: “We're seeing the value of the private rented sector's responsiveness and the crucial role it plays in supporting the changing needs for people across the UK. The data continues to show that demand remains exceptionally high in many areas. The needs of tenants have shifted throughout the pandemic, creating upward pressure on locations that offer more space, both inside and outside the property. Whilst rents are increasing; the expectation is that unemployment will increase further in the summer, undoubtedly leading to some tenants being unable to pay their rent.”
Andy continued by saying; “We've seen an exceptional demand for our rent protection products as agents look to safeguard their landlords and their management income. Landlords are concerned about the potential implications, should their tenant be impacted financially. Rent protection is a product that's helping the industry to add value to the service provided to landlords.”
Diminishing Gap Between Inner And Outer London Rents
Rental growth for London has remained positive for the fourth month in a row. There has been a rise of 1% compared to January 2020 figures. However, there is a difference between Inner London rents, and Outer London.
The rents for Inner London have fallen by 15.9% in the year-on-year comparisons while for Outer London, there has been growth of 6.2%.
Inner London rents are currently 24% higher than Outer London rents. However, back in April 2013, there was a 100% difference.
With the average cost of Inner London rent standing at £2,213 per month, the rent in this part of the capital is 17% less than the level it was in January 2013.
For Great Britain, there was an annual rental growth increase for the sixth month in a row, rising 4.3%, following on from the 4.1% increase in December 2020. The largest growth in rents came in the South East, with a 10% increase over the year. This is the first-time an area apart from London experienced double-digit growth since records began in 2012.
The fall in supply rental property has led to this situation. In January 2021, compared to January 2020, there is 14% fewer rental properties on offer. Apart from London, every region experienced double-digit drops in the supply of rental homes to the market between January 2020 and January 2021.
Whatever your circumstances are, or what move you would like to make next; we are here for you. Stones Residential prides itself on offering the best standard of service to our clients, and we work hard to help you achieve your property goals. If you would like to arrange an appointment or get more details on how we can help you sell your property, contact us today online or by calling us on 020 8954 0045.
