Greater demand for homes in prime central London drives rents higher

Added on August 4th, 2016 in Property News

Rental values have increased across prime central London over the past three months fuelled by greater demand from people looking to rent rather than buy property in the heart of the capital, the latest rental market update from Portico has revealed.

The London estate agents, which considers prime central London as the boroughs of Kensington & Chelsea and Westminster, reports that rental prices have increased by as much as 1.7% since May, led by gains in the heart of Westminster.

The two prime central London boroughs reported the highest average rental prices per month out of all the boroughs across the capital, with the average rental price for a two bedroom property in Kensington & Chelsea almost topping the £4,000 mark at £3,989.

On the whole, the agent’s data suggests the rental market has remained fairly stable post-Brexit, with Camden proving to be the best performing borough, followed by Tower Hamlets, Newham and Haringey.

Robert Nichols, Managing Director, Portico, said: “Caution in the sales market has pushed demand into the prime rental market, and as such we have seen rental prices rise over the past few months. We expect the market to remain stable throughout the summer months, but whether rental prices will continue to rise will depend on the economic consequences of Brexit.

“Outside prime central London, the rental market has remained stable, with tenants still keen to snap up properties in hotspot areas created by infrastructure projects like Crossrail and Crossrail 2, such as Tower Hamlets, Newham, Haringey, Hillingdon and Waltham Forest.”

Borough

May Average Rental Price

July Average Rental Price

% change

Barking and Dagenham

£1,291

£1,278

-1.0%

Barnet

£1,695

£1,573

-7.2%

Bexley

£1,156

£1,108

-4.1%

Brent

£1,669

£1,612

-3.4%

Bromley

£1,308

£1,299

-0.7%

Camden

£2,477

£2,559

3.3%

Croydon

£1,256

£1,251

-0.3%

Ealing

£1,690

£1,586

-6.2%

Enfield

£1,343

£1,334

-0.6%

Greenwich

£1,521

£1,477

-2.9%

Hackney

£2,055

£1,968

-4.2%

Hammersmith and Fulham

£2,181

£2,116

-3.0%

Haringey

£1,551

£1,586

2.2%

Harrow

£1,425

£1,417

-0.6%

Havering

£1,165

£1,156

-0.7%

Hillingdon

£1,295

£1,312

1.3%

Hounslow

£1,677

£1,590

-5.2%

Islington

£2,286

£2,186

-4.4%

Kensington and Chelsea

£3,972

£3,989

0.4%

Kingston upon Thames

£1,538

£1,490

-3.1%

Lambeth

£1,921

£1,855

-3.4%

Lewisham

£1,486

£1,430

-3.8%

Merton

£1,742

£1,621

-7.0%

Newham

£1,525

£1,564

2.6%

Redbridge

£1,343

£1,330

-1.0%

Richmond upon Thames

£1,821

£1,829

0.5%

Southwark

£2,047

£1,986

-3.0%

Sutton

£1,221

£1,234

1.1%

Tower Hamlets

£2,225

£2,251

1.2%

Waltham Forest

£1,351

£1,360

0.6%

Wandsworth

£2,134

£2,034

-4.7%

Westminster

£3,746

£3,811

1.7%

   

Average price change:

-1.7%

 

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