Central London residential rents begin recovery
Residential rents in central London have seen the first uptick since the beginning of the pandemic, according to new findings from Hamptons International.
In November 2021, inner London rents climbed by 3.9% compared with the same time last year. Across Britain, rents have risen by 7.9% on average. Hamptons predicts growth will slow to 2.5% by the end of next year.
While all other regions across the country have risen to exceed pre-pandemic levels, the city centre is still less expensive.
Residential rents in central London have seen the first uptick since the beginning of the pandemic, according to new findings from Hamptons International.
In November 2021, inner London rents climbed by 3.9% compared with the same time last year. Across Britain, rents have risen by 7.9% on average. Hamptons predicts growth will slow to 2.5% by the end of next year.
While all other regions across the country have risen to exceed pre-pandemic levels, the city centre is still less expensive.
Hamptons estimates the average home costs 11.6% more in rent compared with January 2020. This equates to £2.9bn in lost rent over the past 22 months.
The estate agent attributed the new growth to the resumption of office life and global travel. The average rent in central London now stands at £2,329 per month.
Aneisha Beveridge, head of research at Hamptons, said: “The pandemic has divided London into a city of two halves. Rents in inner London have been hardest hit as the rise of flexible working has seen fewer new tenants move into the capital, while some tenants have moved to leafier neighbourhoods in search of more space.
“While there is still a way to go, rents in inner London are on track to reach pre-pandemic levels by the middle of 2022. This means, in a reversal of this year, we are likely to see inner London rents outperform outer London in 2022.”
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