This month, every region in the UK saw an increase in annual room rent, with Northern Ireland seeing the highest, with a 14% rise, and London is seeing rent hikes on a magnitude not seen since before the pandemic.
We can clearly see a bounce back in London’s rental market, with all regions experiencing yearly rent increases – with central areas seeing the highest increases. West Central and East Central London areas both jumped by 26% in February from the previous year. The West End and Soho has increased by 33%, followed by St Johns Wood, and Westminster, which have both increased by 31%. *
The disparity between demand and available properties is the main driver for these record-breaking rental values. According to Rightmove, rental prices in London have reached a new high of £2,193 per month which is up 14.3% from the previous year. This is the greatest annual increase of any region tracked by Rightmove. **
Tenants looking for a new home to live are being faced with the most competitive rental market ever recorded, meaning that rental properties across the capital are being snapped up in record speed.
There are currently more than three times as many tenant enquiries as there are homes available, giving landlords the chance to choose from several tenants.
Although there is a mismatch between tenants enquiries and rental properties available on the market, there are some encouraging signs that there will be more property choice. In March, the number of rental homes on the market was up by 5% compared to two months prior, and up by 16% compared to February.
We’ve seen rental demand surpass last year’s high levels in 2022, which, combined with fewer available homes for rent, has resulted in the most competitive rental market we have ever seen. Supply and demand are influenced by a number of things. Agents and landlords are signing lengthier leases, keeping void periods low, and preventing some stock from returning to market. We’re seeing some of the consequences of the pandemic in terms of demand, with tenants balancing what they need from a property and how close they need to live to work. This is one of the main factors driving more tenants back to London. As more people continue to return to work, demand for the city is driving up.
In comparison to the start of the year, we are seeing more homes becoming available to rent, which will continue to give tenants further options.
While such a competitive market may seem intimidating for tenants right now, there are ways that they can obtain a house. Our expert local agents can help you to find a suitable property within your desired area and can alert you when other properties become available.
Contact our expert agents to find out more.
*According to recent data from SpareRoom
**According to recent data from Rightmove
