At 1.3%, annual rental price growth across the UK in the year to May is at its highest level in 18 months, according to the latest figures released by the Office for National Statistics.
Average rental growth across the London region averaged -0.1% during 2018. The 0.9% rise recorded this month was the highest rate of growth across the capital since September 2017.
In Nine Elms rents are increasing at an even faster rate. This is due to the area maturing – as the area develops, demand increases. In Embassy Gardens we expect rents to rise further as the year goes on, due to the completion of Legacy building and the impending arrival of the hotly anticipated sky pool.
It’s a similar story in West Hampstead, where we’ve seen steady growth this year – a trend we expect to continue. At the moment we’re seeing increases between 5%-7% – well above the London average.
Over in Royal Wharf in East London, rents are remaining steady after a 10% increase last year. Rents are expected to go up again in line with completions in 2020 and 2021.
Further afield, in the North East of England they’ve seen a 0.5% increase in rental prices, the highest level of the growth since the summer of 2017. The East Midlands, South West and Yorkshire and the Humber are currently ranked the top three regions for growth, with rents rising by 2.1%, 2.0% and 1.8% respectively. Across the East of England, South East and South West, rental price growth currently exceeds annual levels of house price growth.
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