Monday 18 March 2019 11:45 am
Rent rises: East London outpaces West London in rental growth race
Fresh evidence of demand for East London’s housing market has been underlined by new figures today, with traditional high-growth areas in the west of the capital seeing more of a slowdown in recent years. Rents in East London’s nine boroughs rose on average by more than 20 per cent since January 2012, compared with growth of 10 per cent among West London’s 12 boroughs. According to a new report published by Landbay, a number of East London boroughs have enjoyed higher growth in the last decade as a result of higher levels of affordability and new incoming transport links such as Crossrail.
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Increasingly popular hotspots in the east end of London, such as Barking & Dagenham and Bexley, have seen rents soar to an average of £1,241 in the last seven years following a surge in demand for properties in the area.
The new Landbay Rental Index report also found that West London boroughs such as Kingston upon Thames and Richmond upon Thames have seen lower growth of eight per cent and six per cent respectively, while Kensington & Chelsea experienced a two per cent drop over the period.
"We are seeing a cultural shift in London, as demand climbs in the East and traditionally popular areas like Westminster and Chelsea slide down the league tables," according to John Goodall, chief executive and founder of Landbay.
He added: "While part of this is a function of affordability, other things too are at play. Rising employment and a thirst for flexible living mean renting is more attractive than ever, with a widening commuter belt in the face of developing infrastructure like Thameslink and Crossrail."