In this article, we’ll be taking a look at another one of our core areas, London.
With three agents operating across London, we have the inside scoop on what the rental market is doing and how tenants are adapting post-pandemic.
The most obvious trend right now is people coming back into the city as the threat of lockdowns began to evaporate in mid-2021. People are back in the office, students are there, and internationals are also back in the city as it is once again a good living option.
This has led to a rental price increase across the city of 15.8% (Rightmove) from Q2 2021 to Q2 2022, with a further 3% rise in July of this year (Goodlord). The yearly rise is the highest in the country and one of the highest ever on record.
Here are some key numbers we’re seeing currently:
These rental prices are also all-time highs for the private rented sector in London, but a quick not on Greater London and the London commuter belt which is important to know for the future of the city’s rental market:
As property & rental prices in London increase, many people are being priced out of properties and city living, (which often comes at a premium in the capital as well), and so they are looking to the areas surrounding London to rent or buy property.
We’re seeing real growth in house prices, rental prices, and a sustained high level of demand in areas such as Slough, Staines, Reading, and Newbury, even when other property hotspots in the country are starting to cool off given the rising interest rates, inflation, energy bills & cost of living.
A great example of this is Strawberry Hill apartments in Newbury, which are undergoing a makeover, just a 50-minute train ride from London, and offering a 6% rental return for 10 years.
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