After rising just 0.6 per cent in 2013, rents are up on average 1.4 per cent year in the second quarter of this year, outperforming underlying house price growth for the first time since September 2010, according to new figures from Savills.
Depending on location, growth has been driven by the family housing market, rising corporate relocation budgets and ongoing demand from singles and sharers in markets such as the east of City hotspots of Wapping and Canary Wharf, which have outperformed all prime London locations, rising 3.1 per cent year to date.
Rents in core prime central London locations have grown by 1.8 per cent over the past quarter and by 2.9 per cent year to date, following -1.9 per cent falls in 2013. The return of the family market saw rents for central London houses rising by 3.4 per cent in the second quarter, with international occupiers now accounting for three-quarters of all tenants.
Source: The Movechannel