Rents in central London climb in June for first time since pandemic

Number of tenants seeking leases up 45% as people return to the inner city

Estate agents boards outside residential properties in the Chelsea area of London. Central London residential property rents jumped in June but are still 16.5% lower year-on-year. Bloomberg via Getty Show more

Londoners have returned to their city centre with a bang.

Rents in central districts surged 4.3 per cent in June from the previous month, the fastest pace on record, as the easing of lockdown restrictions lured tenants back to urban life, according to estate agent Hamptons International. That is the first time since the start of the pandemic that rents recorded a monthly increase.

“Inner London landlords have suffered more than investors anywhere else in the country. But, in recent months, rental growth here has changed course,” said Aneisha Beveridge, head of research at Hamptons, which expects rents in the area to return to pre-pandemic levels over the next year.

Prices were boosted as the number of tenants seeking leases surged by 45 per cent in June compared with the same period in 2019. A lack of available homes has also put upward pressure on rents, as short-term lets such as Airbnb properties come back to the market.

The revived interest in city living offers the potential for central London to bounce back from a devastating year. Debate is still raging about whether the pandemic has permanently soured the allure of city life – or if the trend of urban flight will unwind along with the remaining lockdown measures.

Bloomberg