London continued to register an impressive rental growth outpacing the national average in September 2018. Rents in London increased by 3 per cent in September this year compared to September 2017 with the average monthly rent in the capital now being £1,640 a month.
According to the latest HomeLet Rental Index, rental growth in London is almost twice that of the UK average. The average rent in London was were 110.3 per cent higher than the rest of the UK.
Rents in the UK rose by 1.7 per cent in September compared to the same month a year ago; the average monthly rent now stands at £943 a month. When London is excluded, the average UK rental value was £780 in September 2018, this is up 1.8 per cent on last year.
These statistics reveal that investors in London residential property sector are registering a decent growth in their investment portfolio from residential assets. The London residential market has been on the growth curve for the last three years despite Brexit and its impact on the UK economy. The average rental growth in London has been between 2 per cent and 4 per cent in the last two years.
Continued demand for quality rental property, especially from business travelers, London-based working professionals and young families, is propelling the growth of the London lettings market. This is evident from the fact that only 4 of the 21 Greater London boroughs registered negative rental growth in September.
Harringey & Islington borough registered the highest annual rental variance in September at 14.8 per cent followed by Camden & City of London (12 per cent). Boroughs that registered annual rental variance of 5 per cent or more in September were Ealing (5.4 per cent); Croydon (5.2 per cent); Chelsea, Fulham, Hammersmith & Kensington and Hackney & Newham (both 5.1 per cent).
The highest average rent in September in any Greater London borough was £2,326 in Camden, City of London. It was followed by Westminster (£2,238), Lambeth (£2,148), Chelsea, Fulham, Hammersmith & Kensington (£1,971) and Tower Hamlets (£1,926).
With 25 years supporting the industry, HomeLet is one of the leading sources of support for the UK’s vibrant private rented sector. Its findings reflect the trends in the London rental market, which is considered one of the top real estate investment hubs in the world.
Strawberry Star has several investment options (buy-to-let homes) in various London boroughs where rental growth is faster. If you are keen on buying a home to let, contact our representatives by calling any of our global offices.