Same Old Story - Prime London rents soars as stock sh...

The latest market snapshot by London-focussed data company LonRes shows that a shortage of homes available to rent across all parts of Prime London is still driving double-digit rises in rents.

The number of new instructions in the rental market during November was just 8.3 per cent lower than the figure for the same period last year.

However, it was 45.5 per cent lower than the pre-pandemic average – highlighting just how ingrained this situation has become.

A lack of stock continues to limit activity in the market, with the number of properties let 52.7 per cent in November, below the pre-pandemic average. But thanks to strong demand, average rents are still rising rapidly, up 15.4 per cent over the last year.

This pattern of a lack of stock, combined with rapidly rising rents is one being played out across all parts of Prime London. All Prime London ‘local’ markets have recorded double-digit rent increases over the last year. However, there are some variations.

The fastest rising markets are in Bayswater & Maida Vale (30.4 per cent) and Pimlico, Westminster and Victoria (28.2 per cent) reflecting a significant fall in activity and strong demand. Meanwhile the market with the lowest recorded growth rate was Hampstead at 12.5 per cent.

These figures are reflective of the higher proportion of houses rather than flats in the local markets. And this at a time when flats are in demand and recording larger rent rises across the whole of Prime London. The race for space in the sales market led to greater demand for larger homes but the race for space in the rental market reflects tenants’ desire to have their own space, albeit in a smaller home.

LonRes managing director Anthony Payne says: “There continues to be a dearth of properties to rent. Private landlords we hear are selling up and corporate landlords are not able to add supply fast enough to meet demand. It’s difficult to see what will act as a catalyst for change and in the meantime, rents keep rising.”