London Rents On The Rise Again

Even though events of the past year have significantly impacted what landlords and tenants are looking for, there is no denying London remains the dream location for many people.

Even though events of the past year have significantly impacted what landlords and tenants are looking for, there is no denying London remains the dream location for many people.

Even with reports of many people leaving the capital, people were always going to return to the capital. In North London, there is a wide range of property and rental options, suitable for a wide range of budgets.

At Ariston Property, we believe there is cause for optimism in the North London lettings and property market. We feel this through speaking with landlords and tenants in the local area, as well as buyers and vendors.

We also feel this from reading what industry experts say about the current state of the housing market.

London rental fees are rising, bringing relief to landlords

Information provided by The Deposit Protection Service suggests:

  • In the first quarter of 2021, London rents rose by £8, or 0.61%, to £1,325

  • This is the first rise in more than a year

  • Rents in the North East of England, traditionally an affordable area, have risen by £37, equivalent to 7.12%, to £557 in the same quarter

There were also significant increases in the following areas:

  • Tyne & Wear endured a rise of £32, or 5.78%, to £586

  • Merseyside experienced an increase of £31, or 5.64% to £581

However, there were also areas where rents fell:

  • In Bristol, rents fell by £17, or 1.77%, to £943

  • In Luton, rents fell by £19, or 2.3%, to £785

There is still fluidity in the rental market across the country, which is why the movement in London of late is more notable than you might initially think.

The stabilisation of the London rental market is positive news

Matt Trevett, Managing Director at The DPS, said: “The stabilisation of rents in London suggests that the tenants who have decided to leave the city during the pandemic for work or space reasons have already done so, perhaps to live in cheaper areas or to move nearer to, or back in with, family. We're aware of significant commitment from media and government organisations to invest long-term in the North, including a number of transport and infrastructure projects, which could well be driving the demand we're seeing in the region for property. There remains strong demand for all types of properties, and rents overall across the UK seem to be withstanding pandemic conditions.”

London Central Portfolio chief executive Andrew Weir says: “Despite a third UK lockdown, the first quarter of 2021 saw a continued desire to live in prime London. Village-like neighbourhoods with good shopping facilities and outdoor recreation received the most demand. With a roadmap out of lockdown, rental activity increased over the quarter resulting in less available stock than this time prior year, as opportunistic UK-based tenants continued to benefit from discounted rents. Void periods remained higher than pre-Covid levels but the first quarter of 2021 saw the shortest voids since the pandemic. While it is too early to declare the return of normality, perhaps we are beginning to witness the positive effects of a successful vaccine roll out and easing of government restrictions.”

We know these are challenging times, but if you have any questions about the local property market, please feel free to contact us. At Ariston Property, we aim to support the local community as best we can, and we look forward to assisting you in any way.