The rental value growth in London continues to outpace the rest of the UK, maintaining its position as one of the top rental hubs in the world. The average rental value in London (£1,646 per month) was 98.8 per cent higher than the rest of the UK (£828 per month), according to the latest HomeLet Rental Index.
Though the annual variation for rents in Greater London remained flat in September 2020, it was substantially higher than the UK, which experienced 2.1 per cent growth year-on-year. Covid-19 impacted the rental market across the UK between March and July. Following a relaxation in lockdown measures and working professionals continuing to work from home, the demand for rental homes picked pace. Working professionals are increasingly seeking homes that support ‘work from home’ options, such as more space, better broadband connectivity, communal spaces, gardens, etc.
This demand is evident from the growth in rents in the UK; average rent is now £987, up 0.2 per cent last month. When London is excluded, the average rent in the UK is now £828, this is up 0.4 per cent last month, and 3.9 per cent on last year.
Ten of the twelve regions monitored showed an increase in rental values between September 2019 and September 2020, with the South West seeing an increase of more than 6 per cent. The South West showed the highest yearly increase of 6.6 per cent between September 2019 and September 2020.
London continues to drive the rental market in the UK, as an increasing number of working professionals prefer working from the UK capital. This is an appropriate time to invest in a rental property in London for long-term rental income.
Bronze, a brand-new development by Strawberry Star in Wandsworth, one of the most happening areas in London, is nearing completion. Apartments at Bronze will be ready for move-in by year-end. The demand for rental apartments is high in Wandsworth, which is well connected to the rest of London. If you are interested in knowing more about Bronze, call 0203 072 0040
Average rental value in London (£1,646) was still 98.8% higher than the rest of the UK excluding London (£828), according to HomeLet Rental Index (September 2020).