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LONDON TWO-BED RENT TO TOP 2K BY LATE SUMMER

April 18, 2016

LONDON TWO-BED RENT TO TOP £2K BY LATE SUMMER

Average two-bed rents already at £1,867 pcm                                                                    

Average monthly rents for London two-bed homes will top £2,000 by the late summer, according to Portico, leading London estate agents, as it launches the Portico London Rental Market Report Q1 2016.

The average rent for a two-bed home in London now stands at £1,867 pcm, a two per cent increase from the beginning of the year.

Given that tenancies which commence in September are typically 11 per cent higher than tenancies that commence in December, Portico is predicting that two-bed rents will reach £2,008 pcm by September this year.

And with two people sharing the cost of a two-bedroom home – i.e. £1,004 pcm – this shared rent figure will consume 46 per cent of the average London monthly net salary.

The Portico London Rental Market Report Q1 2016 published today highlights that Ealing has seen the largest increase in rent at 6.9 per cent with rents for a two-bed home now at £1,825 pcm.

This is followed by Richmond-upon-Thames with a 6.0 per cent increase (average two-bed rent now at £1,934 pcm) and Lambeth with a 5.8 per cent increase (average two-bed rent now at £2,051 pcm).

However, average rents have reduced for two-bed homes across seven London boroughs, including two boroughs in Prime Central London where rents in Westminster and Kensington & Chelsea have reduced by 5.7 per cent and 1.1 per cent, respectively.

Bromley has experienced the greatest decline in monthly rents for all properties with a reduction of 6.3 per cent over Q1, followed by Hillingdon at 4.4 per cent and Kingston-upon-Thames at 4.1 per cent.

Robert Nichols, Managing Director, Portico, commenting on this latest report, said:

“The majority of London boroughs are seeing rent increases anywhere from one to almost seven per cent. And so for landlords who may be feeling under particular pressure given government announcements, this may provide some welcome news.

“But our latest report also shows some significant rent drops. Bromley is down over six per cent with Kingston and Hillingdon also experiencing four per cent reductions. All in all, these declines won’t prevent the average two-bed rent tipping over the £2,000 mark later this year.”

The Portico London Rental Market Report Q1 2016 is published every quarter and focuses on the two-bed market as a major indicator of London rental market health.

ENDS

For media enquiries and to interview Robert Nichols (Managing Director), please contact:

Steven Hilton/Emma Williams

Portico Press Office 020 7428 5314

s.hilton@portico.com / e.williams@portico.com

Notes to editors

Largest increases in rent by borough: all homes

Hammersmith & Fulham

+4.7%

Lambeth

+4.7%

Ealing

+4.6%

Westminster

+4.3%

Kensington & Chelsea

+4.2%

 

Largest increases in rent by borough: two-bedroom homes

Ealing

+6.9%

Richmond-upon-Thames

+6.0%

Lambeth

+5.8%

Lewisham

+5.2%

Wandsworth

+5.1%

 

Largest decreases in rent by borough: all homes

Bromley

-6.3%

Hillingdon

-4.4%

Kingston-upon-Thames

-4.1%

Haringey

-4.0%

Enfield

-3.7%

 

Largest decreases in rent by borough: two-bedroom homes

Westminster

-5.7%

Harrow

-3.0%

Bromley

-2.6%

Redbridge

-1.3%

Enfield

-1.3%

 

Data source:

Rental data: Portico

Salary data: ONS has average London salary at £34,320.

City of London data is regularly anomalous and is, therefore, excluded.

About Portico

Portico is a residential estate agent with offices throughout London, specialising in flats and properties to rent and for sale. For landlords, we offer a range of unique packages which include monthly fees, a rental guarantee, complimentary maintenance between tenancies and assistance with tax return. For property sellers, we offer a dedicated property concierge and a complimentary refurbishment service.

 

 

 

 

 


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