The latest research by central London estate agency, Bective, has revealed that the prime London rental market has enjoyed an 8% uplift in rental values over the last year, with the most in-demand areas seeing a jump of as much as 29%. 

Bective’s analysis of LonRes data shows that despite a tough period for the London property market the capital’s prime neighbourhoods have found their feet over the last 12 months, with all but four demonstrating upward growth in the average rent achieved. 

On average, monthly rental values across these high-end neighbourhoods now sits at £1,078 per week – up 8% from £998 per week just a year ago. 

Bayswater and Maida Vale has seen the biggest increase. At £1,205 per week, rental values are now 29% higher per week than this time last year. 

The area of Kings Cross and Islington has enjoyed a 24% increase with Fitzrovia, Bloomsbury and Soho also seeing an increase of 20%. 

Seven other areas have enjoyed double-digit rental growth including Fulham and Earls Court (17%), Hampstead (15%), Hammersmith & Brook Green, Chiswick, North Kensington (14%), Knightsbridge & Belgravia (11%), Chelsea (11%), Richmond, Kew & Sheen (10%) and St John’s Wood, Regents Park & Camden (10%). 

In contrast, rental values in Marylebone have fallen -13% since this time last year, with the Midtown, City & City Fringe area (-4%) and South Kensington (-3%) also seeing a decline while rental values in Kensington, Notting Hill & Holland Park have remained flat. 

At £2,157 per week, Knightsbridge and Belgravia remains the most prestigious pocket of the prime London rental market in terms of the outright cost of renting, followed by Mayfair and St. James’s (£2,123) – the only other area where weekly rental values exceed the £2,000 threshold. 

Canary Wharf and the Docklands is the most affordable pocket of the prime rental market with the average weekly rent averaging just £496. 

Bective Head of Lettings and Property Management, Tom Dainty, commented:

“2021 has been a good year for the prime rental market, all things considered. Typically renting within the prime market is driven by lifestyle rather than necessity, such as work for example. So the market hasn’t suffered to the same extent from the exodus of London professionals looking outside the capital for cheaper rents while working at home. 

At the same time, we’ve seen an uplift in demand as travel restrictions have eased and foreign interest has returned to the London market. In many cases, those with a long term view of homeownership are choosing to try before they buy via the rental market to ensure a particular neighbourhood is right for them before committing to a purchase. 

As a result, larger family houses have been renting at exceptional speeds and a real shortage of suitable stock has seen eager tenants offer above and beyond asking rents to secure them. This has been the predominant factor behind the sustained health of the prime rental market, although we are now seeing enquiries for apartments start to climb once again.”

Rental market values sourced from LonRes – Q3, 2020 versus Q3, 2021 (latest available)

END Notes : –

Bective was founded in 1881. It was purchased in 1995 by Christo Headfort the Earl of Bective who was once described as ‘the poshest estate agent in Britain’. See here 

Bective operates sales, lettings and property management from six West/Central London locations – Notting Hill, Kensington, Ladbroke Grove, Chelsea, Brook Green and Berkeley Square

Bective is backed by a team of well-known and experienced London estate agents including Thomas Dainty as Head of Lettings and Property Management and Craig Tonkin as Head of Sales

Bective supports environmental charities including https://habitatsandheritage.org.uk/ and https://westlondonwaste.gov.uk/take-action/work-with-us/ 

Bective are taking the lead in guiding clients to a more sustainable way of living – providing tools such as handover packs with LED light bulbs, wildflower seeds, zero waste and reusable household goods, items to make household cleaning products, recipes, leaflets with green energy provider details with a Bective discount applied, a guide on recycling, wildlife friendly landscaping and so on