The outer boroughs of London, such as, Barking & Dagenham, are witnessing robust growth in rentals in view of the ongoing massive efforts in regeneration, according to the latest report from Landbay.
“Multi-million-pound council investment spread across the development of new housing and public spaces in this borough has seen the influx of new residents and a greater interest in the area from millennials looking to live in London. However, with rental supply unable to meet demand, prices are on the up,” Landbay observed in its Rent Check report for April 2017.
This is a significant worry for millennials, with whom outer London boroughs are popular, as recent data highlights that rental bills account for upwards of a third of their monthly take-home pay.
Despite consistent price drops, Westminster and Kensington & Chelsea continue to have the highest average rental rates, while Bexley has the lowest, at almost one third of their price (£992/month).
Overall, in the UK, the fastest month-on-month rental growth occurred in England and Scotland. In England (excluding London), some of the fastest rates of rental increase came from the east of the country. Areas such as Peterborough, which is undergoing expansive regeneration backed by £130 million of business investment, incurred an average increase of 4.41 per cent in the last year and continues to sport relatively low rental prices despite the upwards trend.
While rental prices have fallen in areas such as Kensington & Chelsea, outer boroughs like Barking & Dagenham are beginning to take centre stage, as rental rates soar.