Brexit Boosts Rental Prices in Prime Central London

The prime central London rental market has not been hit by Brexit, according to Portico, leading London estate agents, who have just published a July Rental Market Update.

Their data shows that rental prices for two bedroom properties in Kensington and Chelsea have in fact increased by 0.4% post Brexit (from May to July), and rental prices in Westminster have also gone up by 1.7%.

The two prime, central London boroughs reported the highest average rental prices per month out of all the London boroughs, with the average rental price for a two bedroom property in Kensington & Chelsea nearly topping the £4,000 mark at £3,989.

On the whole, the agent’s data suggests the rental market has remained fairly stable post Brexit, with rental prices experiencing a slight 1.7% decrease from May to July.

The best performing boroughs were Camden (3.3% increase from May to July), Tower Hamlets (1.2%), and outer London boroughs Newham (2.6%), Haringey (2.2%), Hillingdon (1.3%), Sutton (1.1%) and Waltham Forest.

quotation-mark_318-48610Robert Nichols, Managing Director, Portico said:

“Caution in the sales market has pushed demand into the prime rental market, and as such we have seen rental prices rise over the past few months. We expect the market to remain stable throughout the summer months, but whether rental prices will continue to rise will depend on the economic consequences of Brexit.

Outside prime central London, the rental market has remained stable, with tenants still keen to snap up properties in hotspot areas created by infrastructure projects like Crossrail and Crossrail 2, such as Tower Hamlets, Newham, Haringey, Hillingdon and Waltham Forest.”