According to the figures, of the nine East London boroughs, the average cumulative rental growth since January 2012 is 21.41% with typical rents now standing at £1,241 per month. Leading the race are Barking & Dagenham (27.66%), Waltham Forest (23.56%), and Bexley (22.02%). The only East London borough that doesn’t make it into the top ten areas of rental growth is Greenwich, which is still above the London average at 15.48%.
Contrastingly, the twelve West London boroughs have seen average growth of just 10.79%, with monthly rents now typically £1,456. Languishing towards the bottom of the league tables are Kingston upon Thames (8.04%), Richmond upon Thames (6.14%), and Hammersmith & Fulham (5.73%). However, boroughs in Central-West London report even lower growth. Camden has seen growth of just 3.78%, and Westminster and Kensington & Chelsea have actually experienced negative growth over the period (-0.77% and -2.31% respectively).
However, when inflation is taken into account (since January 2012, cumulative CPI inflation is 16%) the figures are even starker. In real terms, renters in 21 of the 33 London boroughs have seen a fall in rent. Of these, only one is in East London (Greenwich at 15.48%), while the vast majority of those in West London have seen falls, just two have seen rents rise faster than inflation – Hillingdon (17.12%) and Sutton (16.82%).
Throughout London, three-bed properties have seen the highest growth over the last seven years, with growth of 10.11% compared to two-bed growth of 9.45% and one-bed growth of 8.98%. This trend has reversed over the last year – one-bed flats have seen 0.9% growth year-on-year, while two-beds have seen 0.83% growth and three-beds a mere 0.34%.
Elsewhere, annual rental growth in England (excluding London) is at 1.13%, its weakest point since February 2013. Scotland is the only country in the UK with improving average yearly growth, with annual rental growth of 1.78% in February. Average rent in the UK stands at £1,216, or £772 without London.
John Goodall, CEO and founder of Landbay said: ““We are seeing a cultural shift in London, as demand climbs in the East and traditionally popular areas like Westminster and Chelsea slide down the league tables. While part of this is a function of affordability, other things too are at play. Rising employment and a thirst for flexible living mean renting is more attractive than ever, with a widening commuter belt in the face of developing infrastructure like Thameslink and Crossrail.”
