A breakdown: The record-breaking London rental market

June 23, 2023

A breakdown: The record-breaking London rental markeT

It is a remarkable time to be a London landlord – and these recently published facts and figures show just how remarkable.

Unprecedented Demand

  • Since the last census in 2011, the number of people renting in London has DOUBLED. During the same time, average rents have risen by 48%.

  • London is the epicenter of the UK’s buy-to-let activity, home to 40% of the UK’s private rental stock yet only 13% of the total UK population.

  • In May 2023 for the first time EVER, average London rent surpassed £2,500 pcm. (The South East average is £1,676 pcm).

  • Annual rental growth in London reached 17.2% between May 2022 & May 2023 (Zoopla).

  • London now has the shortest void periods of all regions in the UK with only 12 days out of a year registered as void, compared to 20 days a year in the East Midlands and 18 in the North West.

  • 2023 also saw the highest ever ratio of registered renters versus available properties to let at 22:9 (Foxtons).

The state of supply

  • In Q3 2022 there were 30% fewer properties available to rent than before the pandemic.

  • Rental demand in March 2023 vs the 5yr average was UP 51% (Zoopla)

  • Available rental stock in March 2023 versus the 5yr average was DOWN 33% (Zoopla)

The lasting consequences:  the new “prime” London

  • Rents are being driven up across the capital as renters move further out seeking more affordable deals: A 38% rise in renter registrations in Zones 3-6 in 2022 (Foxtons)

  • Gross average yields rising to 5.8% in Zones 3-6 – excellent returns by London standards

  • 40% of applicants are finding a rental home OUTSIDE of their initial search area.

The future

Savills are forecasting a further 18.4% increase in London rents from 2023-2027

RPA are one of the leading advisors on UK investment property for overseas and expat property investors. To see our current London stock click here or speak to one of our advisors today to see how you could become a London landlord with record-breaking rental returns.

NEWEST LAUNCH

THE GOLDFINCH APARTMENTS,

 HENDON WATERSIDE, LONDON

Located in a major area of regeneration, Hendon Waterside is a new residential and award-winning community for North London; 2,000 homes across 30 acres. Regeneration zones like this one are noted for their huge impact on residential prices.

ELLIOT ROWE

Associate Director (UAE)

about the AUTHOR

Elliot is the Associate Director (UAE) of RPA Group.  Sixteen years of experience in the UK Real Estate Industry working in the UK and the Middle East. He's been advising clients on how to develop leading portfolios to achieve client goals and personal targets