The forecast for London’s 2022 rental market is bright.
Demand Up & Prices Back Up in London’s Rental Market
London’s rental market, like every other major metro’s rental market in the world, took a beating in 2020. Now, it’s back to rent levels as usual.
In a newly released report from Benham and Reeves, a letting and estate agent, London’s current rental values are +9.4% higher than they averaged during 2020.
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Outskirts of City Boasted Highest Rent Levels
Rent levels on the city’s fringes recorded even higher rent levels.In Kingston, rents are up +20.1% y/y; +18.3% in Bexley; and +15% in Newham.
London remains the laggard with rental values remaining -11.4% y/y.
The strongest indication of London metro rent levels is, according to this report, average London rent. Now, the average rent in London is +5.7% higher than it was in 2019.
Demand Now Up
Even though demand plummeted in 2020, Marc von Grundherr, director of Benham and Reeves, said, “…the London market is nothing but resilient and when the tide starts to turn, it turns very quickly indeed.”
As demand has increased, rental values have increased. 22.7% of rental units are reporting rents have exceeded pre-pandemic levels and 67% of rental units are reporting that rents are steadily climbing. Industry experts predict that rental values will increase even more when international tenants return to the metro.
Rental Market Decline “Finally Behind Us”
Benham and Reeves has forecasted rental values to rise +5.5% in 2022.
“We can now say with confidence that the rental market decline is now firmly behind us,” said von Grundherr. “Any lower confidence forecasts of further price reductions can now be disregarded with yet further positive growth forecast for 2022.”
That said, the outlook for London’s rental market is “sunny.”
Thanks to MansionGlobal.
