Residential rents continued to push upwards in the UK capital, as demand picked pace in many of the London boroughs.
Rents in London increased by 1.4 per cent in August 2018 when compared to the corresponding period last year, according to the latest HomeLet Rental Index. With 25 years supporting the industry, HomeLet is one of the leading sources of support for the UK’s vibrant private rented sector.
The average rent in the capital now stands at £1,632 a month. London continues to show strong rental growth when compared to the UK average rental growth. In August, average rental values in London were 72.3 per cent higher than the UK.
Average rents across the UK rose by 0.9 per cent in August 2018 when compared to the same month a year previously; the average rent in the UK is now £947 per month. When London is excluded, the average UK rental value was £786 in August 2018, this is up 1.3 per cent on last year.
With the demand for rental properties in London growing, many landlords are planning to increase the rent in the coming months. While 17.9 per cent of the landlords surveyed by HomeLet said that they will increase the rents in the next six months, another 18.7 per cent of the landlords intend to raise the rents in the next 12 months.
Tenants surveyed by HomeLet revealed that they plan to continue to opt for rental properties till they are in a position to buy a new home. While 33.5 per cent tenants said that they will continue to stay in a rental property for about one to three years, 21.3 per cent plan to stay in rental property for more than three years. Majority of the tenants planning to stay in a rental property for more than two years are trying to save for their deposit to buy a new home.
In addition to international business community, students, travelers and working professionals are driving the demand for rental properties in London.
Consequently, many London boroughs are experiencing rental growth. The top five London boroughs with the highest average rent are Camden, City of London (£2,250), Westminster (£2,247), Lambeth (£2,167), Chelsea, Fulham, Hammersmith & Kensington (£1,969) and Tower Hamlets (£1,906).
The five London boroughs with the highest annual variance in average rent are Haringey and Islington (13.9 per cent), Hackney and Newham (7.5 per cent), Camden, City of London (7.4 per cent) and Bromley (5.2 per cent).