Renting in London: prime London rents soar by nearly a third to nine per cent above pre-pandemic highs

New figures reveal that London’s lopsided rental market has caused rents in high-end areas such as Belgravia and Kensington to rise by almost 30% in the past year. According to Knight Frank’s Prime London Lettings Report, rental values in central London saw a 29% annual increase in April. According to Hamptons data, an apartment in prime central London costs on average?3,960 per month and?3,870 per month, respectively. The 29.9 percent price increase in the Prime London Lettings report is partly due to the fact that rents fell in early 2021 after the pandemic, which temporarily flooded the market with rentals. The market has shifted dramatically in the opposite direction, with a supply crisis currently gripping London. Knight Frank’s data shows that rental values in all prime areas are now 9 per cent higher than before the pandemic. The latest data shows that the number of property evaluations fell by 40% in April compared to the average of five years ago, while the number of tenants who registered was 57% higher. “The supply shortage is only going to get worse this summer,” stated Gary Hall, Knight Frank’s head of lettings. “We will see continued competitive bidding and increased supply when the sales market slows and more owners decide they want to let their property out.” The capital’s high rents are enticed some landlords to return to the market. For years, landlords have been pulling away from the market, due to taxes and regulation. This has caused the number of rental properties in the capital to drop by 300,000. It is now that buy-to-let landlords may be being tempted back. Hamptons, an estate agent, recently found that investors bought property worth?8.5 billion — which is equivalent to 42 980 homes in Britain — within the first three months this year. This figure is twice that of the pre-pandemic 2019 figures and marks the first time since 2016 when more property was bought than sold. “The recent rent increases have started to compensate some of the regulatory changes over the last few years,” stated Andrew Groocock, Knight Frank’s regional head of sales in Knight Frank’s City East and North regions. It’s driving more activity in London’s apartments market. The sales market is also being affected by the supply shortage. Knight Frank says London’s demand is still very strong relative to London’s supply. Knight Frank says that demand is still very strong compared to supply in London. The latest House Price Index from Halifax shows that average house prices in the UK have increased again, but that the growth rate is slowing. This is in contrast to rising inflation and mortgage rates. This was the first such slowdown in the year. Prime central London prices are still in steady recovery mode, with quarterly growth of 1% in April, the highest rate since July 2015. The price growth in each prime central area was 9.2%. South Kensington was followed by Belgravia (5.7%), Hyde Park (4.6%) and Islington (5.7%).