Rental demand soars
Rental demand has been particularly
strong, increasing by 56% year on year
from 2020 to 2021 and more than
doubling from the level seen in 2018.
This increased demand has pushed up
rents, which were at their highest ever
level by Q4 2021, 7% higher than two
years earlier. After seeing the greatest dip
during the Pandemic, rents in Zone 1 have
swung back strongly and are now 14%
higher than their pre-Pandemic level.
Demand outstrips supply
The stamp duty holiday, which came to an
end in September 2021, boosted demand
for properties. Demand is still outstripping
the level of new instructions and this is
putting upward pressure on prices.
On a price per square foot basis, achieved
prices by the end of 2021 had recovered to
just 0.7% below their pre-Pandemic level.
In some areas, prices are now above their
previous peak. For example, in Zone 1, the
average price of a property reached a new
peak in Q4 2021, 4% higher than before
the Pandemic.
LONDON, THE
RESILIENT CITY
2 The London Report 2022 | London, the resilient city
After the challenges of the last two years,
London is not only bouncing back but is
thriving. We have seen record-breaking
levels of demand for homes, which has
pushed rents to an all-time high and
prices not far behind.
It is not hard to see why momentum is
building. Topping many global surveys for its
business strength, and with more European
headquarters than any other city, it is
regularly voted as one of the world's best
cities to live and work. Employee numbers
are back to 0.4% above pre-Pandemic levels.
Home to two of the world's top ten
universities (QS World University Rankings
2022), London continues to attract students
from across the globe, boosted by its status
as the world's best city for students.5
WE SAW DEMAND
FOR HOMES
SURGE IN 2021,
REGISTERING 41%
MORE APPLICANTS
THAN IN 2020 AND
62% MORE THAN IN
THE PRE-PANDEMIC
YEAR OF 2019.
Leading global
city for financial
and professional
services1
Top
European
city to
visit2
World's most
'magnetic' city4
UK's
greenest
city3