London rents are rising
The HomeLet Rental Index, relating to February 2022, indicates average rents across the UK reached £1,069. This represents a rise of 0.5% on the January 2022 figures.
Average rents in the capital experienced a slight dip, falling 0.2% to an average of £1,757 per calendar month.
Andy Halstead, chief executive of HomeLet and Let Alliance, says: “The cost-of-living crisis is likely to intensify as the months tick over, due to inflation and rising energy prices, making it more important than ever for landlords to consider rent protection products to ensure that they are sufficiently protected against the unpredictable nature of the current situation.”
Andy Halstead continued by saying; “The second month of 2022 followed largely similar trends to the first, with the average rental price across the UK continuing to rise month-on-month. The housing supply required to meet the demand sadly isn’t there, so as far as we can tell, this is a trend that will continue to appear throughout 2022, barring an unexpected change. It is interesting to see Greater London record a small dip after a sustained period of resurgence, albeit the dip is a relatively small one.”
Average room rents are rising too
According to a prominent flat sharing site, the average room rent in London stands at £796 per month. In March 2021, the average room rent in the capital stood at £703 per month.
Every area of London has seen an increase in annual room rent:
- West Central London saw a 26% increase between February 2021 and February 2022
- East Central London also saw a rise of 26% in these 12 months
Postcode areas of London which saw a significant increase in annual room rent include:
- The W1 postcode, covering the West End and Soho saw a rise of 33%
- The NW8 postcode, covering St John’s Wood, witnessed an increase of 31%
- The SW1 postcode area, covering Westminster, Belgravia and Pimlico also saw a rise of 31%
Other interesting findings of the study include:
- In 2021, the supply of rental property in London fell by 53%, representing the largest drop of all regions in the UK
- During this period, 41% of London landlords said they didn’t feel confident about the rental market
- Of these landlords, 20% said they intend to leave the rental market and 11% intend to reduce the size of their rental property portfolio
Given there is still prominent demand for rental property in London, there is an opportunity for landlords. Anyone looking to enter the London rental market should contact Holmes Estate Agents, and we will be more than happy to help you.
Matt Hutchinson, a director at SpareRoom director, was reported by Property Reporter as saying: “London saw rents drop by unprecedented amounts over the course of the pandemic. However, with demand increasing at the end of 2021, and continuing to grow at the start of 2022, we’re seeing those rents rise again, in some cases by significant amounts. That’s going to hit renters hard. Almost a third of Londoners already spend over half their take-home pay on rent. With a cost-of-living crisis ramping up as we speak, and set to deepen over the coming months, many renters will be worried about making ends meet.”
Contact Holmes Estate Agents for all your South West London housing needs in 2022
We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.