Ten London areas where rents have increased by more than 10% in a year

London rents are persevering with their upwards trajectory, with asking rents reaching a document excessive of £2,695pcm, but the tempo of progress is slowing in line with Rightmove.

The latest of 13 consecutive quarterly will increase (0.1 per cent) equates to an additional £1 per 30 days on common and, whereas London rents at the moment are 2.4 per cent increased than this time final 12 months, they’re rising on the slowest fee since 2021.

That is in distinction to the market exterior the capital, the place rents fell 0.2 per cent, the primary drop since 2019.

In the meantime, for landlords, the common yield of a rental property in London is now 5.6 per cent, the bottom throughout the nation after an annual enhance of 0.1 per cent, making the capital much less worthwhile than elsewhere within the nation.

The info additionally means that the Renters’ Rights Invoice, which incorporates an finish ‘no fault evictions’ and is because of come into impact later this 12 months, may very well be encouraging extra London landlords to promote than in different components of the nation. Rightmove finds that just about one in 4, or 24 per cent, of London properties on the market on its platform in 2024 have been beforehand rented out. This compares to 1 in 5 (20 per cent) in 2023.

The corresponding numbers exterior London have been 15 per cent in 2024 and 13 per cent in 2023.

When it comes to the place within the capital is seeing rental progress, the information factors to the outer boroughs suggesting that London tenants have been competing for properties in historically better-value areas farther from the town centre.

The typical lease in internal London is £3,180pcm, a 2.2 per cent enhance on final 12 months, whereas asking rents in outer London are £2,341pcm on common, up 2.7 per cent on 2023. Drilling all the way down to an area stage, the vast majority of areas exhibiting a major enhance in rents have been in outer London and had good transport hyperlinks.

Topping the checklist is Thornton Heath in Croydon, which noticed a 14 per cent year-on-year enhance, and advantages from a fast trainline that will get you into central London in 25 minutes. Harlesden in Brent has additionally seen speedy rental progress within the final 12 months with will increase of 12 per cent. This space is ready to be the situation of the Motherland spin-off, Amandaland, because the present’s star Amanda relocates to South Harlesden (or So-Ha as she calls it) from Chiswick.

Rents in Greenford, Ealing, have been additionally up 12 per cent yearly. The world is famend for its transport hyperlinks, each inside and outdoors London; the A40 runs by means of it and out westwards, whereas North Greenford is served by Sudbury Hill station, on the Piccadilly line, and Greenford itself is on the Central line.

The one internal London space that showcased vital rental progress was Bayswater in Westminster. This space has been the centre of a £3 billion regeneration undertaking that can see the previous Whiteley division retailer reworked into 139 luxurious flats, a Six Senses wellness lodge, 20 outlets and eating places, a Third House health club and an Everyman cinema. The world has seen 11 per cent year-on-year lease will increase.

“Whereas new tenants are nonetheless paying greater than they have been right now final 12 months, the tempo of progress continues to gradual,” says Rightmove’s Colleen Babcock.

“Nonetheless, although that is the massive image of market exercise, brokers on the bottom nonetheless inform us that the market may be very sizzling, and a few areas have improved greater than others in terms of the availability and demand steadiness.

“Our personal knowledge reveals that the common rental property remains to be receiving 10 purposes per property, which is decrease than the height, however nonetheless double the pre-pandemic norm.”