Rising rental growth in prime London market

Reduced supply may be resulting in higher rents in the prime London lettings market, reports LonRes. Average annual rental growth increased to 6%, which is the highest recorded since late 2023, taking rents to 33.3% above their 2017 to 2019 pre-pandemic average.

Looking back at five years of data, February 2020 was the last month before the lettings market was hit by Covid. Rents for houses have held up the most, avoiding the second drop in 2021 and returning to rents achieved in February 2020 by August 2022. Flats then followed. Since then, rental increases have been slower, but all types have seen further growth.