Rent Prices Up in Prime Central London Following Brexit
The prime central London rental market has remained strong following Brexit, with rent prices rising between May and July, according to London estate agent Portico.
The agency’s July Rental Market Update found that the average rent price for a two-bedroom property in the prime central London borough of Kensington and Chelsea has increased by 0.4% post-Brexit, while rents are up by 1.7% in the City of Westminster.
These two prime central London boroughs have again recorded the highest average rent prices of all the London boroughs, with the average rent price for a two-bed home in Kensington and Chelsea almost hitting the £4,000 per month mark, at £3,989.
On the whole, Portico’s data suggests that the rental market has remained fairly stable post-Brexit, with average rent prices experiencing a slight 1.7% decrease between May and July.
The boroughs with the greatest rent price rises between May and July were Camden, at 3.3%, Tower Hamlets, 1.2%, and the outer London boroughs of Newham, 2.6%, Haringey, 2.2%, Hillingdon, 1.3% and Sutton, 1.1%.
The Managing Director of Portico, Robert Nichols, comments on the figures: “Caution in the sales market has pushed demand into the prime rental market, and as such, we have seen rental prices rise over the past few months. We expect the market to remain stable throughout the summer months, but whether rental prices will continue to rise will depend on the economic consequences of Brexit.
“Outside prime central London, the rental market has remained stable, with tenants still keen to snap up properties in hotspot areas created by infrastructure projects like Crossrail and Crossrail 2, such as Tower Hamlets, Newham, Haringey, Hillingdon and Waltham Forest.”
If you are thinking of investing in the London market to take advantage of robust conditions and forthcoming infrastructure improvements, look to the areas that are likely to benefit from the new Crossrail 2 project. Portico has highlighted the areas that landlords should consider for their next buy-to-let investment: https://www.justlandlords.co.uk/news/crossrail-2-coming-london-invest-along-line/