A lack of properties in London’s most prestigious postcodes has pushed rents up by 28.3% over the last year, it has been revealed. Figures from LonRes show there are now 50% fewer rental properties hitting the market compared to before the pandemic, yet demand for rental properties in London’s poshest postcodes has begun to bounce back over the previous year, as renters flock back into the capital’s most expensive areas. The imbalance has caused rents in prime areas of the capital, around Hyde Park and Hampstead Heath, to increase by 28.3% over the past 12 months, to levels that are now 5.6% higher than at their pre-pandemic peak in 2018. At the same time, house prices in London’s prime areas are now 6.1% higher than they were at the start of the pandemic, in April 2020. The increase comes as domestic buyers have driven up prices through their willingness to a pay premium “to secure the house of their dreams,” LonRes managing director Anthony Payne said. Properties outside of central London, in areas such as Richmond, have done particularly well compared to those in the city centre, in traditionally more expensive areas such as South Kensington and Primrose Hill. Meanwhile, flat prices have dropped 0.9% since April 2020 – despite having jumped 4.5% over the previous year – amid a drop in international buyers purchasing city centre flats in areas such as Chelsea and Knightsbridge.
City A.M.
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