London rents rise faster than inflation to £1,499 a month as tenants fight over flats
Continued demand for detached properties and a post-Covid resurgence in rent for flats has pushed annual increases in London above inflation.
Average rents have accelerated by 4% to £1,499 during Q3 – more than double the previous quarter’s rise – and up 11% (£160) higher than 12 months ago, says The Deposit Protection Service (DPS), which found that the average rent for detached homes in the capital is up 12% to £2,098 while flats rose 13% to £1,513.
Its latest DPS rent index reveals that UK rents increased by more than 2% for the second quarter in a row to reach £889, an increase of 8% (£71) in the last year.
Although the pace of rental growth slowed slightly in most regions outside London in the last quarter, rents have continued to hit new heights, growing by more than 7% since Q3 2021.
Scotland is up 8% to £721 while the North West is also up 8% to £692, both outpacing the national percentage rise. Rising by a comparatively modest 5% to £705, the West Midlands has seen the lowest growth over the last 12 months.
Shortages
Across the UK, flats saw the greatest annual percentage rent increase, up 9% from £830 to £909, while terraced properties and detached properties both increased by 8% to £860 and £1,213 respectively. Semi-detached properties saw the smallest percentage increase (7%) to £962.
MD Matt Trevett (pictured) says rent increases continued due to shortages in rental stock and general increases in the cost of living. He adds: “Ongoing demand for larger properties in London, as well as flats during the past 12 months, is driving the significant rent increases we’re seeing in the capital. In order to secure a property, tenants are still willing to pay historically high rents.”
