During Q1, rents in the capital saw a climb of £8 or 0.61% to £1,325 - the first rise in over a year. According to data from The Deposit Protection Service, this could suggest that the city's rental market has started to stabilise as we edge out of the pandemic.
By comparison, rents across the North East, traditionally the most affordable UK region to rent, increased by £37 (7.12%) to £557 the same quarter, largely owing to rents on flats going up by £40 (7.81%) to £552, said the UK's largest protector of deposits.
According to DPS figures, there was overall resilience in the UK's rental market during Q1 2021, with significant increases in Tyne and Wear up £32 (5.78%) to £586 and Merseyside up £31 (5.64%) to £581, while rents in Bristol fell £17 (-1.77%) from £960 to £943 and in Luton by £19 (-2.3%) to £785.
Despite a pandemic flight from cities during Q3 2020, rents across all property types increased during Q1 2021, as well as overall between Q1 2020 and Q1 2021, said the organisation.
Matt Trevett, Managing Director at The DPS, said: “The stabilisation of rents in London suggests that the tenants who have decided to leave the city during the pandemic for work or space reasons have already done so, perhaps to live in cheaper areas or to move nearer to, or back in with, family.
“We're aware of significant commitment from media and government organisations to invest long-term in the North, including a number of transport and infrastructure projects, which could well be driving the demand we're seeing in the region for property.
“There remains strong demand for all types of properties, and rents overall across the UK seem to be withstanding pandemic conditions.”