New figures suggest that rents rose by over 20% in certain parts of the country in the last two years. However, they have fallen in London.
South West is experiencing the greatest increase in rentals values, which has increased 23.5 percent since January 2020. It is the equivalent of a rise of £195 per month, according to the figures from Hamptons.
In contrast, typical rents in Inner London have fallen 11.6 per cent and on average it costs £305 less to rent there than in January 2020.
In some areas of the country, rents rose by over 20% in the last two years
London’s 13 inner boroughs saw rents rise by 3.9% compared to last year.
They used a 90,000-strong database to compile the numbers and they were calculated based on actual rents rather than those advertised.
Rent values have risen in every region of the country except Inner London which has seen rents rise, but they remain below levels before the pandemic.
But, the numbers have been rising steadily since January 2020, when they were at their highest annual level.
The result is that London’s inner boroughs saw rents rise by 3.9% compared to last year.
They now stand at an average of £2,329 a month, up from -0.1 per cent in October.
Rent growth in each region since the pandemic started (Jan 2020 verses November 2021).
Hamptons explained that workers are returning to the workplace and global travel is reopening as the reasons behind the rise in sales.
As fears mount about Omicron growth, new Covid restrictions are in place.
Hamptons stated that the inner London rental market has been bolstered by an annual 14 percent increase in applicants seeking to rent.
There were 71% fewer houses for rent in November 2020 than there were in November 2020. Agent said last year the market was saturated with short-let property that had been put on long-term rental markets at the beginning of the pandemic.
November marked also the first time that Outer London rents have risen in the past 15 months, at a rate faster than Inner London.
Tenants have been looking for more space since the outbreak of the pandemic. This has led to a shift in work patterns, which in turn has boosted rents in suburbs and suppressed demand for living in inner cities.
Because of the slow recovery in inner London, rents have gone up three times faster outside London than they did inside since the pandemic.
Rents in Greater London have gone up 5.9% since January, but elsewhere London has seen rents rise 16.1%.
The average rent in Britain is up 7.9 per cent in the past year, according to Hamptons
Tenants are looking for more space because of a shift in work patterns that has occurred since the outbreak.
With rents increasing 14.6 Percent in the last year, South West continues to experience the fastest rate of rental growth. It has recorded 8 consecutive months of double-digit increase.
There were 22% more people looking for rent in the area than last year, and only 21 percent more homes on the market.
Aneisha, from Hamptons, stated: “Across Great Britain rents have risen 7.9 percent over the last 12 months, marking the strongest rental growth in November since 2013, when our records started.
Growth has been fueled by a lack of stock and tenants continuing to be willing to pay more for space. The most notable benefit has been to the South, outside London, where rents have risen the most since the pandemic.
“While stock levels are not expected to rise in the next year, there is little to indicate that they will. However, as household budgets become more tight and affordability restrictions set in, we anticipate rental growth slowing down.
Elle added that London has been divided by the pandemic.
“Rents in Inner London are the hardest hit because of the rising popularity of flexible working. Some tenants have relocated to greener areas looking for more space. “But, the November resurgence of office life as well as the availability of worldwide travel made the rental market a pivotal point.
“While rents in Inner London still have a long way to go before they reach the pre-pandemic level by 2022, there is a lot to be done. In other words, Inner London’s rents will likely outperform Outer London by 2022, in an apparent reversal from last year.
