Rents in big London borough rise by 27% in ONE year

Landlords in London are benefitting from double digit increases in rents including one borough where rents have risen by 27%, latest research from Benham and Reeves reveals.

Its deep dive into data from the Office for National Statistics reveals London rents increased by 11.2% between March 2023 and 2024, rising from £1,848 to £2,055. And across Britain as a whole, the average cost of renting has risen by 9.1%, reaching £1,246 as of March 2024.

DOUBLE-DIGIT

The capital saw rents increase by 11.2% year on year with Scotland the only other area of Britain to see double-digit rental growth over the last year at 10.5%.

Brent (pictured) enjoyed the highest rental growth in the UK with the London borough seeing the cost of renting rise by a whopping 27% in a single year, pushing rents to £1,940 per month, up from £1,527 in 2023.

In Scotland the government prohibited rent increases between September 2022 and April 2023, after which rent increases were capped at 3% in most cases until the end of March 2024, when the cap expired.

Marc von Grundherr, Director of Benham and Reeves, says: “The allure of London is as strong as ever and that’s being seen on the ground, as properties are being let a matter of hours after being listed.”

STRONGER RENTS

He adds: “Demand is especially fierce in Brent, Greenwich and Islington, where rental properties are commanding considerably stronger rents than they were just a year ago, which will bring some positive news to landlords despite the challenges of dealing with higher mortgage rates and energy costs.”

And he says: “We’re seeing some huge increases in rents of late, some to the tune of 45% but this high rental growth isn’t just confined to the capital. There’s been strong increases across every region, but especially Scotland.

“So while some landlords may have chosen to exit the sector, the high tenant demand for rental properties has only served to make renting out properties more profitable for those sticking it out.”