Revealed: London postcodes where rent has dropped by up to a THIRD in a year ‘as young professionals flee the city’ – and the suburban areas seeing the most growth
- London rental market has been hit by Covid with prices dropping by up to a third
- EC3, which covers Aldgate in Zone 1, has seen the biggest fall since 2019
- Suburban areas have seen rent increase with the rise in remote working
The London rental market has been rocked by the coronavirus crisis with prices dropping by up to a third the last 12 months, data reveals.
Properties in postcode EC3, which covers Aldgate in Zone 1, have been most affected, according to the price index by SpareRoom. Rooms are 34 per cent cheaper to rent compared to this time last year, dropping from £1,244 to £824.
The area is in the heart of east London and boasts good transport links to the City and other professional hubs which have become less desirable with the rise of remote working.
The London rental market has been rocked by the coronavirus crisis with prices dropping by up to a third the last 12 months, data reveals. Pictured, a map illustrating the postcodes that have seen the biggest decrease in rental prices since the third quarter of 2019
Postcode W9, which covers parts of Maida Vale and Paddington, has seen the second biggest rent price drop (20 per cent), followed by SW1 (17 per cent), which covers Westminster, Belgravia and Pimlico.
The reverse of the trend is seen at the other end of the index, with suburban parts of London seeing the biggest growth in rent.
SE28 (Thamesmead) has seen the biggest rise with a 10 per cent increase from £559 to £613, followed by E4 (Chingford), which has grown 7 per cent from £569 to £610.
Matt Hutchinson, director at SpareRoom, noted: ‘Once again, London dominates the headlines in terms of falling rents, and it’s generally the most expensive neighbourhoods that are worst affected.
‘With so many young renters leaving the Capital, either to find cheaper rents, to move with family, or to leave the UK altogether, it’s hard to know when, or even if, London will regain the appeal it had before the pandemic.
Properties in postcode EC3, which covers Aldgate in Zone 1, have been most affected, according to the price index by SpareRoom.
‘What we’re seeing might just be a temporary shift in the rental market, or it may be the start of the UK’s rental map being redrawn permanently.
‘Even if young renters do return to the capital in their previous numbers, affordability will be their absolute top priority, in a city that already had an affordability crisis coming into this.’
SpareRoom’s Quarterly Rental Index compares data from Q3 2020 with Q3 2019.
It incorporates data – includes average rents and supply – from over 500,000 room ads in shared accommodation across the UK.
Shifting fortunes: How the cost of renting in London has changed
LONDON POSTCODES WITH BIGGEST DECREASE IN RENTAL PRICES
W9 (Maida Vale / Paddington)
W10 (North Kensington)
NW8 (St John’s Wood)
W8 (Holland Park)
SW8 (South Lambeth)
LONDON POSTCODES WITH THE BIGGEST INCREASE IN RENTAL PRICES
N20 (Totteridge / Whetstone)
N11 (New Southgate)
E6 (East Ham)
N21* (Winchmore Hill)
SE19 (Crystal Palace)
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