Low stock levels, high demand and increased renewals characterise prime London rental market according to property data firm LonRes.
“The rental market is still very tight with the number of lets nearly half the levels recorded last year – down 43.8 per cent – leading to rapid rises in rents, up 24 per cent over the last year” explains LonRes managing director Anthony Payne.
Rents are rising rapidly across all property types although there are some interesting differences.
Studio flats have seen the fastest rent rises over the last year (26 here cent) but the change since 2019 is lower (16.1 per cent). LonRes says this reflects bigger rental falls in 2021 and a subsequent bigger bounce back – possibly showng an increase in people looking for a pied à-terre as they return to work.
It is larger units with three-plus bedrooms that have recorded the biggest rent rises since 2019 (23.2 per cent), which is similar to the growth recorded over the last year (24.3 per cent).
Meanwhile, houses have recorded the lowest growth over the last 12 months (just 11.5 per cent) though growth is higher since 2019 at 14.6 per cent, as demand for houses held firm during the pandemic and rents did not fall.
There are still no signs of any big increases in homes available to rent – during what is typically the busiest time of the year for the rental market. This suggests upwards pressure on rents will continue in the coming months.