hile it’s been a tough year for the London rental market, analysis shows that average rents have rocketed in the capital since the global financial crisis.
Rents have risen by 68% in London, increasing from £977 in 2009 to £1,638 in 2020.
The second fastest growing area is the South East, where they’ve climbed by 39% from £775 in 2009 to £1,078 in 2020.
Meanwhile they’ve seen a 25% uplift in the West Midlands, from £624 in 2009 to £780 in 2020.
Ged McPartlin, managing director of Ascend Properties, said: “It’s fair to say that pandemic uncertainty may have caused hesitation for some when looking to invest within the rental market, particularly in areas such as London where demand has dropped due to the enforced trend of working from home.
“However, while Covid uncertainty has created a tricky landscape in some respects, we remain a world away from the financial crisis of 2008 and many remain reliant on the rental sector in order to live.
“It also remains clear, that much like the wider housing market, any periods of instability are relatively short-lived and we’ve seen strong and consistent growth across the board as a result.”
Rents have increased most modestly in the North East, by 10% from £552 in 2009 to £607 in 2020.
There’s also been comparatively small increases in Yorkshire and the Humber (11%), the South West (17%) and the North West (17%).
McPartlin added: “For the professional investor who may be worried about a potential bump in the road, the build-to-rent space could be the best route to help mitigate any concerns.
“Not only does the sector provide a higher rental premium to begin with, but the lifestyle offering it provides attracts those with a longer-term view to renting.
“As a result, residents often rent for far longer terms than the traditional 12 months, providing a more stable stream of income and fewer void periods.”