The latest research by Hamptons shows that rental growth outside London hit the highest figure on record since the index began in 2012. The average rent of a newly let property is now 8.0%, or £68 per month, higher than it was in February 2020, according to the latest Hamptons Monthly Lettings Index.  

February 2021 also marked the first time that the South East recorded double-digit growth in rents, in a sign that tenants across the capital are moving further out of the city to live in larger homes, with longer commutes made bearable as they are less likely to be required to visit company offices on a daily basis from now on.

Across Great Britain, rents rose 5.6%, the fastest rate of growth since February 2015. However, London saw a double dip in rental growth as rents fell again following five months of growth. Across Greater London rents fell 0.2% year-on-year, with the drop driven by falls in Inner London.

Average rents in Inner London crashed by 17.7% year-on-year, the largest decrease recorded since the onset of the pandemic. Meanwhile in Outer London, rents grew 5.3% annually, the sixth consecutive month of growth.

20% less BTL properties available to rent, but more available in London
Rental growth nationally has been fuelled by a lack of stock, with 300,000 fewer properties coming onto the rental market in the first year since the onset of the pandemic (March 2020 to February 2021), nearly a fifth less than during the preceding 12 months.