Rent prices surge upwards in London’s best locations

Rental prices in London’s best locations have recorded their strongest quarter of growth in more than ten years, according to estate agents Savills.

The firm said prime London rents rose by 2.9% in the third quarter to September 2021, the largest quarterly increase since March 2011.

It added that rental prices in prime central London locations rose particularly strongly, by 3.6%, in quarter three this year.

Reasons included workers returning to the office, corporate relocations and the resumption of international travel.

Savills said that prime rental prices are up 1.6% year-on-year across the capital. Popular family house locations in south west London, including Wandsworth (7.3%) and Wimbledon (6.1%), outperformed this figure considerably.

Savills also reported that the flats market has started to recover, due in part to a shortage of stock.

The agent said that private outdoor space and space to work from home continue to rank as the top two priorities for tenants in prime locations, ahead of proximity to transport.

Amelia Greene at Savills, said: “The return of international travel, combined with a complete easing of restrictions, has sent the prime lettings market into a frenzy.

“In some instances, tenants are ensuring that they are the most appealing candidate by paying for a full year upfront, or by committing to properties sight-unseen.”