The Post-Pandemic Rise of London Rent Prices 1 1 Be lgrave Road London, SW1V 1RB, UK +4420391 15656 bookings@lhalondon.com LHA London Ltd 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 new school term. While a lack of new properties for rent is driving the current growth in prices, Savills predicts that the stock of properties is going to increase in the following months. SOURCE: h t tps : / / l ha london .com/proper t i es / h t tps : / /www.sav i l l s . co .uk / ins igh t -and- op in ion /sav i l l s -news /327180-0 /p r ime- london- ren ta l -marke t -exper iences-doub le -d ig i t -annua l - ren ta l -g rowth - fo r - the - f i r s t - t ime- in -over -a -decade h t tps : / / i news .co .uk / inews- l i f es ty le /money /p roper ty -and-mor tgages / london- ren t -p r i ces -see- la rges t -annua l - r i se - in -over -20 - years -as -peop le - re tu rn - to -cap i ta l -a f te r -cov id - pandemic -1722455