Last week Rightmove (the UK's leading real estate portal), published their lettings market update for Q4 of 2021 and it’s safe to say, figures are on the up! In nearly all areas London saw a significant increase in rental figures, asking price and landlord yield.
For the rental market, London saw its largest quarterly jump of any region, at a whopping 6.1% increase, meaning prices have now risen beyond pre-pandemic and are now 3% higher than they were at the start of 2020.
The annual increase of rent for London was 10.9%, with the Rightmove Rental Trends Tracker predicting rents rising at the fastest ever rate since records began.
At the end of 2020 with tenants leaving London in search of greener pastures and cheaper rent to enjoy the impending lockdown, rental prices began to fall and there were more empty homes and fewer people to fill them.
This led to a 6.4% drop in asking prices on properties with many landlords offering cuts in monthly prices in a bid to entice residents to stay.
But gone are those darker days, and as we enter into 2022 the figures are on the up with rent at the end of 2021 higher than it was before the pandemic.
It’s all good and well looking at these statistics for London as a whole but one of the worst-hit areas of Covid-19 is arguably inner London. At the beginning of 2021 due to Londoners still not being convinced about returning to the capital, inner London saw a drop of 14% of rental prices.
However, as London started to come back to life and those who had fled in 2020 wanted a taste of the hustle and bustle again the inner London rental market rapidly increased by 16.2%.
There is one final record still to break in this tale of growth across the capital and for this, the award goes to landlord yields. Those too have seen a sharp increase of 4.6%, hitting an all-time high since 2015.
So what has Rightmove predicted for the future?
After analysing all the statistics and figures Rightmove have predicted that there will be a 32% increase for property from tenants, resulting in a 5% increase of the asking price due to supply and demand.
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(Please note all statistics are average. All information is from Rightmove analysis).