Stat Of The Week

Is London on the verge of a rental recovery?

Hamptons recently reported on the downturn witnessed in the Inner London rental market following the advent of the pandemic. The capital saw rents plummet consecutively for thirteen months in a row; meanwhile, “other regions reached record highs.” Hamptons recorded the first rise in average rent prices in Inner London for the first time since June 2021, “averaging £2,103 pcm”.

This rental rebound could be sparked by “tenants returning to the capital as more amenities and attractions begin to open their doors. In June 2021, rent prices in Inner London jumped 16% from June 2020 and a massive 45% from the same time in 2019. Hamptons recorded a similar rise in outer London, with the entire city experiencing a hike in rent prices from April 2021.

In collecting information from the inner city as well as the surrounding outer areas, Hamptons are “forecasting that rents in Inner London will return to pre-pandemic levels within 12 months.”

That said, and despite a recovery, rents in Inner London are likely to remain lower than they would have been had the pandemic not happened.

A relatively buoyant recovery has ensued as restrictions have been lifted, but some scarring is likely to remain as tenants become less closely bound to their office desk and international travellers remain in short supply.

While a rise in prices may detour renters from returning to the city, the general outlook is positive for London’s rental market as we continue to see the city come back to life following a year in lockdown.