London rents rise at fastest pace in more than a decade, Government data shows
The Association of Residential Letting Agents said the main reason was still too little housing supply
London private rental costs increased at their highest rate in a decade in March, new Government data shows.
The price of rent in the capital grew by 4.8% year-on-year, which was the highest rate since December of 2012.
London rents have skyrocketed since the end of 2021, after small post-pandemic declines.
The Association of Residential Letting Agents said the main reason was still too little housing supply, with an average of 10 prospective tenants registering per available property.
The Royal Institution of Chartered Surveyors, meanwhile, noted that rents could rise higher.
Across the UK, rents grew at a similar pace to London, at 4.9%, which was the highest since 2016.
The Government noted that its own statistics on rent prices showed much slower increases than similar data from the private sector, which show rents rising twice as quickly. This, it said, was mostly due to the fact that private-sector statistics - often from estate agents such as Zoopla - focuses on new rentals, while the official statistics also include existing rentals which tend to experience slower price growth.
“UK rental prices continued to climb with the strongest growth since records began in 2016,” ONS head of housing market indices Aimee North said. “The surge in London’s rents remained evident with the highest annual percentage increase in over a decade.”
Gareth Atkins, managing director of lettings at Foxtons, said a number of renters have already started looking for new properties to get in ahead of the typical summer rush.
“At the beginning of the first quarter, we said the market would show the same strength as last year’s first quarter, but it would climb through 2023 at a much steadier rate, requiring renters to remain vigilant as stock comes to the market out of season,” he said. “At the close of the first quarter, this prediction is right on track. Supply and demand have hit similar levels to 2022, and we’re beginning to see savvy renters register their search in advance of the summer rush.”
Amid soaring rents, a number of London tenants have bought properties elsewhere in the UK, which they rent out in order to afford the costs of living in London.
The price of rent in the capital grew by 4.8% year-on-year, which was the highest rate since December of 2012.
London rents have skyrocketed since the end of 2021, after small post-pandemic declines.
The Association of Residential Letting Agents said the main reason was still too little housing supply, with an average of 10 prospective tenants registering per available property.
The Royal Institution of Chartered Surveyors, meanwhile, noted that rents could rise higher.
Across the UK, rents grew at a similar pace to London, at 4.9%, which was the highest since 2016.
The Government noted that its own statistics on rent prices showed much slower increases than similar data from the private sector, which show rents rising twice as quickly. This, it said, was mostly due to the fact that private-sector statistics - often from estate agents such as Zoopla - focuses on new rentals, while the official statistics also include existing rentals which tend to experience slower price growth.
“UK rental prices continued to climb with the strongest growth since records began in 2016,” ONS head of housing market indices Aimee North said. “The surge in London’s rents remained evident with the highest annual percentage increase in over a decade.”
Gareth Atkins, managing director of lettings at Foxtons, said a number of renters have already started looking for new properties to get in ahead of the typical summer rush.
“At the beginning of the first quarter, we said the market would show the same strength as last year’s first quarter, but it would climb through 2023 at a much steadier rate, requiring renters to remain vigilant as stock comes to the market out of season,” he said. “At the close of the first quarter, this prediction is right on track. Supply and demand have hit similar levels to 2022, and we’re beginning to see savvy renters register their search in advance of the summer rush.”
Amid soaring rents, a number of London tenants have bought properties elsewhere in the UK, which they rent out in order to afford the costs of living in London.