London landlords enjoy balanced rental growth over past 6 years

London buy-to-let has long been seen as an attractive investment prospect – and new figures underline why. Recent data show that London’s landlords have seen significant rental growth over the medium term – with rents up by 4% year on year over the last six years to an average of £1,564 per month.  

That’s faster growth than anywhere else in the UK. 

However, there are signs that the once red-hot market may be taking a sensible pause – not just in London but nationwide. Once the late summer seasonal boost – as recent graduates and students come to the capital to start new jobs and study courses – eases off, achieving the levels of rental growth landlords have enjoyed in recent years may start to look more challenging. 

Nevertheless, these are encouraging findings, highlighting the underlying strength of the London rental market, particularly for professional landlords who are in the market for the long term. 

Stephen Ludlow, Chairman at ludlowthompson comments, “London rental property has performed strongly and should remain resilient, although in the near term, landlords may have to be more considered in their expectations as to the rental values they can achieve.”

“This is something to bear in mind when negotiating terms with tenants – who may be in a stronger bargaining position now. Weighing up what maximum rents might be achieved against the potential value of the tenant relationship, in terms of long-term tenancies which can help minimise void periods is especially important in today’s climate."

"Landlords will also benefit from the use of an established agent, like ourselves, who is able to provide up-to-the-moment feedback from prospective tenants viewing their properties, for example through our MyAccount system. This helps to make sure any possible void periods are minimised and maximum pricing is achieved."