The Post-Pandemic Rise of
London Rent Prices
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More than two years since the start of the
COVID-19 pandemic, prime London rental values
have seen the largest annual rise in over 20
years.
An acute shortage of new properties on the
market combined with people returning to
London after the pandemic has resulted in a
strong demand for lettings in the UK capital. This
demand has resulted in the largest annual rise in
London rent prices in over 20 years.
According to the latest figures from property firm
Savills, rental values increased 3.3 per cent
between April and June of 2022 among prime
London areas, taking the annual growth to 13.5
per cent.
This is the highest price growth since 1998. This
is also the first time in over a decade that the
London rental market recorded a double-digit
annual growth, which
last happened
in
September 2010 when the annual growth peaked
at 11.6 per cent, a recovery following the 2008
financial crisis.
The growth in rent prices can be primarily
observed in areas that suffered major falls during
the pandemic lockdowns, including central and
northwest London.
LOCATION VS. RIGHT PROPERTY
Jessica Tomlinson, a research analyst at
Savills, explained the rise of rental costs in
the capital, saying, “A combination of
strong demand from those returning to
London and a continued lack of stock in
both the lettings and sales market has
meant that growth across the prime rental
market has far exceeded any losses seen
over the past two years.”
Tomlinson added that the value increases
will plateau soon because of what tenants
are looking for. She explained that tenants
are less concerned about the location and
more fixated on finding the right property.
N O M A D I C | 2 4
As a result, more tenants are looking into
locations
across
London,
including
Nottingham, Islington and Westminster.
These areas are especially attractive to
students, particularly those looking for
accommodation ahead of the