London Leads Record Rental Growth: A Positive Outlook for Property Investors
Published by Magnate Assets on
Dec 6, 2023
In a year of unprecedented challenges, London's property market shines with the most robust rental growth, reaching record highs. According to Hamptons, the average rent in the capital surged to £2,425 per month, marking an impressive 11.8% increase compared to November 2022.
London tenants contributed a staggering £32.1 billion in rent this year, surpassing £28.7 billion in 2022 and highlighting the resilience and attractiveness of the city's property landscape. This exceeds the combined rent bills of the North of England, Midlands, Wales, and Scotland.
Inner London remains a powerhouse, driving rental growth with a remarkable 13.2% increase in rents on new tenancies last month. The Midlands emerges as the second-fastest-growing region, outpacing Scotland in rental growth.
While rental growth across Great Britain experienced a slight cooldown from its peak in August, it remains robust. Seven of the 11 regions witnessed a slowdown, with Scotland and the South East showing the most significant monthly deceleration. Despite rising costs for landlords and a limited rental supply, growth persists.
Hamptons predicts the total rent paid by tenants in Great Britain for 2023 to reach an impressive £85.6 billion, showcasing a remarkable £8 billion annual increase from 2022. This marks the most significant yearly jump on record, emphasising the resilience and growth potential of the rental market.
As we navigate a dynamic property landscape, London is a beacon of opportunity for investors, with double-digit growth contributing to the sector's positive trajectory. The average rent on a newly let home in Great Britain rose to £1,348 pcm in November, reflecting a robust 10.2% increase from last year.
The property market in London not only defies expectations but continues to thrive, making it an attractive proposition for investors seeking long-term gains.
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