Could people be—brace yourself—over London?
According to Rightmove, the UK’s largest online real estate website, rental costs in London are now the cheapest they’ve been in five years. But, while the average has fallen in the capital during that time, other areas in the UK have seen rents rise by up to 35%. (Featured image: I Wei Huang, Shutterstock)
If you exclude London from the figures, the country’s average monthly rent is at a record high; up 4.2% over the last year alone. It’s the highest annual rise the UK has seen since 2015.
Due to increased demand in rental properties outside of the capital, as well as a relative lack of said rental properties in many of these places, prices have soared. The East Midlands has seen the largest increase, rising by 19.3% over the past five years. And if we’re being more specific, Wolverhampton is the town/city that’s seen the biggest jump; with a 35% rise in costs over the same period. Walsall, Bradford and Liverpool aren’t far behind, with respective surges of 32%, 29% and 28%.
Meanwhile, London has seen rents drop by 7.8% since this time in 2020. It’s believed that this decline, and subsequent increase elsewhere, has been caused by the mass exodus out of the city since the start of the pandemic. Generally, people are choosing larger properties with outdoor spaces over proximity to the office, especially now that working from home is becoming the new normal for many.
Incidentally, along with lower prices, the number of empty rental properties in London is up by 19% compared to this time two years ago.
Central London has, unsurprisingly, seen the biggest decline in rental costs. And if you’re looking to take advantage, prices in Finsbury have dropped the most: they’re now 24% lower than they were in March 2016. Averages in Barnes, Stockwell and Notting Hill have also fallen by 20%.
So, although it’s bad news for London landlords, it’s brilliant news for London renters. At least for now!
Not that much has changed though: this questionable Kensington flat will set you back £175,000, and you can’t even live there.
Also published on Medium.