London rents are persevering with their upwards trajectory, with asking rents reaching a report excessive of £2,695pcm, but the tempo of development is slowing in keeping with Rightmove.
The newest of 13 consecutive quarterly will increase (0.1 per cent) equates to an additional £1 per thirty days on common and, whereas London rents are actually 2.4 per cent greater than this time final yr, they’re rising on the slowest price since 2021.
That is in distinction to the market outdoors the capital, the place rents fell 0.2 per cent, the primary drop since 2019.
In the meantime, for landlords, the common yield of a rental property in London is now 5.6 per cent, the bottom throughout the nation after an annual enhance of 0.1 per cent, making the capital much less worthwhile than elsewhere within the nation.
The information additionally means that the Renters’ Rights Invoice, which incorporates an finish ‘no fault evictions’ and is because of come into impact later this yr, might be encouraging extra London landlords to promote than in different components of the nation. Rightmove finds that just about one in 4, or 24 per cent, of London properties on the market on its platform in 2024 had been beforehand rented out. This compares to 1 in 5 (20 per cent) in 2023.
The corresponding numbers outdoors London had been 15 per cent in 2024 and 13 per cent in 2023.
London’s rental hotspots
When it comes to the place within the capital is seeing rental development, the info factors to the outer boroughs suggesting that London tenants have been competing for houses in historically better-value places farther from the town centre.
The common lease in internal London is £3,180pcm, a 2.2 per cent enhance on final yr, whereas asking rents in outer London are £2,341pcm on common, up 2.7 per cent on 2023. Drilling right down to a neighborhood stage, nearly all of areas exhibiting a big enhance in rents had been in outer London and had good transport hyperlinks.
Topping the checklist is Thornton Heath in Croydon, which noticed a 14 per cent year-on-year enhance, and advantages from a fast trainline that will get you into central London in 25 minutes. Harlesden in Brent has additionally seen speedy rental development within the final yr with will increase of 12 per cent. This space is ready to be the placement of the Motherland spin-off, Amandaland, because the present’s star Amanda relocates to South Harlesden (or So-Ha as she calls it) from Chiswick.
Rents in Greenford, Ealing, had been additionally up 12 per cent yearly. The world is famend for its transport hyperlinks, each inside and outdoors London; the A40 runs by way of it and out westwards, whereas North Greenford is served by Sudbury Hill station, on the Piccadilly line, and Greenford itself is on the Central line.
The one internal London space that showcased important rental development was Bayswater in Westminster. This space has been the centre of a £3 billion regeneration undertaking that may see the previous Whiteley division retailer reworked into 139 luxurious residences, a Six Senses wellness resort, 20 retailers and eating places, a Third House fitness center and an Everyman cinema. The world has seen 11 per cent year-on-year lease will increase.
“Whereas new tenants are nonetheless paying greater than they had been presently final yr, the tempo of development continues to gradual,” says Rightmove’s Colleen Babcock.
“Nevertheless, although that is the large image of market exercise, brokers on the bottom nonetheless inform us that the market could be very sizzling, and a few areas have improved greater than others in relation to the availability and demand steadiness.
“Our personal knowledge reveals that the common rental property continues to be receiving 10 functions per property, which is decrease than the height, however nonetheless double the pre-pandemic norm.”
Record of London rental hotspots
|
Space |
Borough |
Common lease development year-on-year |
|---|---|---|
|
Thornton Heath |
Croydon |
14 per cent |
|
Harlesden |
Brent |
12 per cent |
|
Greenford |
Ealing |
12 per cent |
|
Barnes |
Richmond upon Thames |
12 per cent |
|
Biggin Hill |
Bromley |
11 per cent |
|
Bayswater |
Westminster |
11 per cent |
|
East Finchley |
Barent |
11 per cent |
|
Deptford |
Lewisham |
10 per cent |
|
Northolt |
Ealing |
10 per cent |
|
East Bedfont |
Hounslow |
10 per cent |
