Research by London rental platform, Rentd, reveals that post-pandemic rental prices are on the rise across the majority of the capital but that affordability can still be found in certain pockets of the city.
Rentd analysed rental value growth across each London postcode, comparing the average pre-pandemic rent to the current market.
The research shows that the much-reported exodus of London during the COVID-19 pandemic appears to be well and truly over. Average London rental values today are 10% higher than they were in December 2019 before the pandemic started.
The biggest increase has been in Hammersmith’s W6 postcode area, where the average rent is now 45.6% higher than pre-pandemic levels, rising from an average of £2,171 per month to £3,161 per month.
In SE9, around Eltham, rent is now 44.9% higher than it was in December 2019 with an average monthly asking price of £1,507, while in Hackney’s E9 area, prices are up 41.9%.
But while rental prices are now higher than their pre-pandemic levels across 88% of London postcodes, there are still some pockets of the capital’s rental market that have yet to bounce back.
In SW1, around Westminster and Belgravia, the average rental value is currently -22.2% lower than it was in December 2019.
In the W1 outcode area of Mayfair and the West End, prices are down -17.4%; in NW11, around Golders Green, they’re down -13.7%; and in Earl’s Court’s SW5 area, prices are currently -13.6% lower than they were pre-pandemic.
TW10 (-10.4%), N13 (-10.2%), WC2 (-10%), IG5 (-8.4%), SW10 (-7.1%) and SW14 (-6.3%) also rank within the top 10 London postcodes where rental values have seen the biggest dip when compared to the pre-pandemic market.
Founder and CEO of Rentd, Ahmed Gamal, commented: “Despite a very tough pandemic period, the London rental market has bounced back at an alarming rate and rental values are now exceeding their pre-pandemic benchmarks in many areas of the capital.
“This has been driven by a revival in tenant demand, both domestic and foreign, as the city has returned to normality both from a professional and social point of view.
“However, not every pocket of the London rental market has performed as well and tenants can still find some very good bargains when looking in the right place. But given the wider performance of the market, it’s unlikely these rental market bargains will be around for very long.”