Average rents are rising by almost 5% a year in some London boroughs amid growing demand for properties, new figures reveal.
Rental inflation in London
The housing data from property website Zoopla showed more people chasing homes to let in the capital, bucking a national trend and adding to the renting crisis being suffered by so many Londoners. The growing scramble to find a home, which comes after the Renters Rights Act came into force on 1 May, has fuelled a 2.2% annual increase in the average rent in the city, to £2,206.
The biggest annual rise was in Bromley at 4.9% to £1,705, followed by Richmond-upon-Thames with an increase of 4.7% to £2,228, and then Bexley, up 4.5% to £1,630. Islington saw a rise of 4.4% to £2,537, Merton of 4.2% to £2,089, and Enfield also 4.2% to £1,784.
Reasons behind the increase
Richard Donnell, director at Zoopla, said: "London is the only region of the UK which has registered an increase in demand for rented homes which is 6% higher than a year ago. This is down to higher mortgage rates hitting would-be first time buyers in higher value markets and keeping them renting for longer. Rental inflation has also increased to 2.2%, up from 1.9% a year ago as there has been no change in the number of homes to rent."
Donald Trump's Iran war has pushed up the cost of borrowing, including mortgages, which has put upward pressure on rents.
Highest and lowest rents
The highest average rent in London is in Kensington and Chelsea, which saw a 1.6% rise to £3,569, followed by Westminster at £3,296 after a 2.4% increase. All boroughs saw rises apart from Hammersmith and Fulham, where there was no change to its average rent at £2,664. The lowest average rent was in Sutton at £1,593, followed by Croydon at £1,589 and Bexley on £1,630.
Outside London, rents rose the most in the North East at 3.8% a year, followed by the North West at 3.3% and Yorkshire and the Humber at 2.8%.
Housebuilding crisis
London has been hit by a slump in housebuilding. Having pledged to build 1.5 million new homes this Parliament, the Government and Mayor of London Sir Sadiq Khan are stepping up action to try to tackle the housebuilding crisis in the capital. But a series of reports have warned of the scale of the new homes crisis facing the city.
