The New Year commenced on a positive note for the London residential rental market with January registering 4.4 per cent annual increase in rents.
The average monthly residential rent in London is now £1,627, an increase of 4.4 per cent over the corresponding period in 2019. This clearly shows that the London residential rental market is recovering since the new government assumed power. With uncertainty relating to Brexit also ending, optimism has returned to the residential rental market.
According to the latest Rental Index from HomeLet, average rents in London were 105 per cent higher than the rest of the UK. The average rental values in Greater London (£1,627) were 71 per cent higher than the UK (£953) in January 2020.
The Rental Index revealed that rents rose from last year in 9 out of 12 of the regions in the UK. The North West region registered the highest increase in rents at 8.7 per cent in January followed by Wales (7.3 per cent); Scotland (6.2 per cent) and East Midlands (5.1 per cent).
Average rents across the UK rose by 2.3 per cent in January 2020 when compared to the same month a year previously; the average monthly rent is now £953. When London is excluded the average rent in the UK was £793 last month. The rental market across the UK is expected to maintain steady growth in view of rising demand.
Rents in London increased by 4.4% in January 2020 than in the same month of 2019; the average rent in the capital now stands at £1,627 a month.