Average rents in London have climbed above £2,200 per month, with some boroughs experiencing annual increases of nearly 5%, according to new data from property website Zoopla. The figures reveal a growing demand for rental properties in the capital, bucking a national trend and deepening the renting crisis for many Londoners.
Rental inflation driven by demand and mortgage rates
The average rent in London now stands at £2,206, marking a 2.2% annual increase. This rise is fueled by a 6% surge in demand for rented homes compared to a year ago, the only region in the UK to see such growth. Richard Donnell, director at Zoopla, attributed this to higher mortgage rates that are keeping would-be first-time buyers in the rental market for longer.
The Renters' Rights Act, which came into force on 1 May, has also contributed to the tightening market. However, the number of available rental homes has remained unchanged, putting upward pressure on prices.
Borough-by-borough breakdown
Bromley recorded the highest annual rent increase at 4.9%, bringing the average to £1,705. Richmond-upon-Thames followed with a 4.7% rise to £2,228, while Bexley saw a 4.5% increase to £1,630. Islington rents rose 4.4% to £2,537, and both Merton and Enfield saw 4.2% increases, to £2,089 and £1,784 respectively.
At the top end, Kensington and Chelsea remains the most expensive borough with an average rent of £3,569, up 1.6%. Westminster follows at £3,296, a 2.4% increase. Only Hammersmith and Fulham saw no change, with rents flat at £2,664.
The cheapest rents are in Sutton at £1,593, Croydon at £1,589, and Bexley at £1,630.
National context and government action
Outside London, the North East saw the strongest rental growth at 3.8%, followed by the North West at 3.3% and Yorkshire and the Humber at 2.8%. The data underscores the severity of the housing crisis in the capital, where housebuilding has slumped.
The government, along with Mayor of London Sir Sadiq Khan, has pledged to build 1.5 million new homes this Parliament to address the crisis. However, multiple reports highlight the scale of the challenge.
Zoopla's full dataset for London boroughs shows annual rent changes ranging from 0% in Hammersmith and Fulham to 4.9% in Bromley, with the majority of boroughs experiencing increases.
