London is leading the way in driving rental growth in the UK, with double-digit increases in rents that surpass every other region in Great Britain.

According to analysis from London lettings and estate agent, Benham and Reeves, London rents rose by 11.2% between March 2023 and 2024, increasing from £1,848 to £2,055. The capital’s landlords are benefiting from this surge in rents, especially in areas like Brent, Greenwich, and Islington, where rental properties are commanding significantly higher rents compared to a year ago.

At a regional level, London outperforms the rest of Britain, with Scotland being the only other area to see double-digit rental growth at 10.5%. The top 10 hotspots for rental growth in Britain include not only London boroughs like Brent, Greenwich, and Islington, but also areas outside of London such as Folkestone and Hythe, Birmingham, Oldham, and Ipswich.

Despite challenges such as higher mortgage rates and energy costs, landlords in London and other regions are experiencing strong profitability due to the high demand for rental properties. Director of Benham and Reeves, Marc von Grundherr, notes that the allure of London remains strong, with properties being let within hours of being listed. He also emphasizes that the increase in rents is not limited to the capital, but is also seen across every region, especially in Scotland.

Overall, while some landlords may have chosen to leave the sector due to perceived hostility from the Scottish government, the high demand for rental properties has made renting out properties more profitable for those who have remained in the market.