New data from estate agency, Chestertons, suggests that strong tenant demand, the return of the Prime/Super Prime London ‘corporate’ tenant and an undersupply of available properties to rent are the key reasons for this uplift.
Comparing January 2022 to January of last year alone, the agency’s 31 branches have seen a cumulative increase in tenant enquiries of 51% whilst the number of new rental homes coming onto the market decreased by 25%. During the same time period, Chestertons has seen a 19% uplift in the number of tenants renewing their current rental agreement.
The area with the biggest rent increases is central London, where the average rent increased 48% between January 2021 and January 2022. The southwest areas have seen a 34% uplift whilst the north and east of the capital have witnessed an increase of 23%.
Richard Davies, Chestertons’ Head of Lettings, says: “Tenants who secured property at a discounted rental rate during the pandemic are keen to hold on to this deal as long as possible, particularly in the face of rising living costs. With the return of office workers, international students and corporate tenants alike, London’s rental market has seen unprecedented demand that is outstripping supply. This has created an extremely competitive market for tenants and many have begun offering landlords more rent than they are asking in order to secure a property.”
