London UK House Rental Growth Remains Low As Workers Head For The Suburbs


Unusual news for the London rental market in which a story of lower rents and better value London rental prices prevail. Good news for tenants but not so good news for landlords that have suffered at the hands of the Pandemic. The Index of UK rental prices was released on February 16th 2022 showing that Private rental prices paid by tenants in the UK rose by 2.0% in the 12 months to January 2022, up from 1.8% in the 12 months to December 2021. However, a trend for London indicates slow rental price rises as demand decreases for property in London

Private rental prices grew by 2.0% in England, 1.4% in Wales and 2.6% in Scotland in the 12 months to January 2022. The East Midlands saw the highest annual growth in private rental prices (3.6%), while London saw the lowest (0.1%).


The Pandemic takes its toll on London’s Rental Prices 

b6716d5be651ebf2e4482bd5b81a06288d54113f5ebff464d6b5c276f9fdcc80London’s rental price growth in January 2022 (0.1%) remains the lowest of any of the English regions. This reflects a decrease in demand as remote working has shifted housing preferences because workers no longer need to be close to offices. It also reflects an increase in supply, such as an excess supply of rental properties as short-term lets change to long-term lets. Further commentary on these movements can be found in Section 4 of our Index of Private Housing Rental Prices, UK: March 2021 bulletin.

Source: ONS.Gov

According to HomeLet the average rental value for new tenancies in London is £1,760 a month. Rents in London have increased by 12.6% compared to last year.

Will London House Prices Be Affected By The Russian Ukraine Crisis?

Russian money was a major player in London, however, Russia introduced restrictions on money leaving the country, Britain increased the costs of its “golden visa” programme, tightened anti-money laundering rules and introduced a string of stamp duty changes, which penalised overseas buyers in the most expensive property markets. The top local authorities for Russian owners were Westminster, Liverpool and Tandridge, Surrey. However, it does seem the actual number of Russian property owners in London is comparatively low and a reduction in Russian based buyers will have a negligible effect on London house prices

London Landlords Gather 

The UK’s National Landlord Investment Show takes place in London on March 15th 2022 returning to Old Billingsgate, London for the 72nd live show since our inception in 2013. With 71 live shows to date, prospective landlords can keep up-to-date with industry developments and maximise property investments. 

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