Huge 22.5 per cent rent rise in prime London, says LonRes

Huge 22.5 per cent rent rise in prime London, says LonRes


Todays other news
Average UK monthly private rents increased by 7.7% in the...
Inflation slowed to 2.6% in the year to March says...
Renters’ budgets remain strong while rent levels are holding firm...
The claim comes from a company called COHO...
The trade body has its say on government welfare changes...


Rents in prime areas of London are rocketing at an annual level of 22.5 per cent according to LonRes. 

Despite the falls recorded when the pandemic hit, average rents – buoyed by the return of people to work and students to study – have recovered to above their pre-pandemic levels across central London.

The recovery has been strongest in Prime Central London with rents now 6.7 per cent higher than their 2019/20 peak while in Prime Fringe London they are 1.6 per cent higher. 

Just 14 per cent of new lets in January this year required a price reduction, a massive fall from the 51 per cent figure recorded in January 2021.

Anthony Payne, managing director of LonRes, says: “Lack of stock both for rentals and sales, continues to dog the prime London housing market.  And in a high demand, low supply environment, it follows that prices inevitably rise.  

“In the case of the rental market, stock levels are currently 67 per cent lower than they were in January last year and prices 22.5 per cent higher. 

 

 

“This is a complete turnaround in fortunes for a sector that was particularly hard hit when the pandemic began.  Back then rents fell as fast as stock levels rose.  Almost two years on and the lettings market has effectively covered the ground lost during the pandemic.  Today rents are some five to six per cent higher than in the months preceding that first lockdown.

“But this has also meant less bargaining power for tenants returning to work or study.  Just 14 per cent of new lets in January were subject to a price reduction.  

“Unusually – sales and lettings tend to follow opposing paths – it’s an all too similar tale in the prime London sales market.”

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Renters’ budgets remain strong while rent levels are holding firm...
It’s snapped up boutique Battersea agency Hamnett & Ganpot...
Northern regions leading the way, according to Fleet Mortgages....
Each part of the prime rental market saw rents rise...
The BoE has come to a decision on interest rates...
The removal of temporary rent controls may make buy-to-let more...
The Welsh Government is backing the call for a 'compensation'...
Recommended for you
Latest Features
Average UK monthly private rents increased by 7.7% in the...
Inflation slowed to 2.6% in the year to March says...
Renters’ budgets remain strong while rent levels are holding firm...
Sponsored Content
With less than a month to go until the UK...
The UK government has implemented 16 financial sanctions rule changes...
The owners of the Rentman software application (for property Lettings...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here