In this edition of the London Lettings Report, we explain the reasons behind record
rents in the Capital. We also look at the impact of rising costs on renters and landlords,
to understand the strain on budgets across the board.
MARKET REALITY
Over the first half of 2022, average rents in London reached their highest ever level,
pushing through the £500 per week threshold to £560 per week by June. Average London
rents in the first half of 2022 were 25% higher than in the same months of 2021, although
just 13% higher than the first half of 2019, before the Pandemic.
RECORD RENT LEVELS
A supply/demand imbalance is the key feature of the current London lettings market.
We're registering twice as many new renters in 2022 than 2019, while at the same time
private landlords are reviewing their portfolios. We explore the market dynamics and how
they are creating significant shifts in rental values and renter behaviour.
RISING COST OF LIVING
With increasing rents only part of a well-documented cost of living crisis, in which
inflation is at a 40-year high, we're diving into the details of rent affordability. London is
once more showing its resilience; rent as a proportion of gross income has fallen slightly
in London during the last year. We also show how relatively low interest rates and rising
rents mean that landlords continue to see good income returns.
THE TRUTH BEHIND
LONDON'S RECORD RENTS GARETH ATKINS
MANAGING DIRECTOR -
LETTINGS
51%
20.3
FEWER
PROPERTIES
AVAILABLE TO LET
RENTER
REGISTRATIONS PER
PROPERTY LISTED
IN H1 2022
up from 13.2 in H1 2021
London Lettings Report Summerr 2022 | Introduction 1
June 2022 versus June 2021
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