Savills Portugal

Over the past two years, the prime lettings market has seen extremely strong competition among tenants seeking to secure their next property and this has only heightened now that people have returned to London and their place of work or study.

Although this has been the case across the capital, one area that has seen a significant increase in demand is East London. This was reflected in our prime North and East London index, which recorded a +3.2 per cent increase in rental values in Q1 2022 and +15.2 per cent on an annual basis.

Equidistant between Canary Wharf and the City of London, Victoria Park and Hackney have long been popular with those wanting to enjoy good connectivity along with proximity to London’s creative scene, a sense of community spirit and green expanses on their doorstep. Once offering relative value for money, these London enclaves are now experiencing unprecedented demand from tenants, largely young creatives and those within the tech or finance sectors returning to the office and reconnecting with the city buzz.

In fact, the demand in Hackney has been extraordinary over the last few months, so much so that in the year to date we have seen a circa 23 per cent increase in applicants registering to rent here versus the first four months of 2021. This has led to a supply and demand imbalance and as a result, this market in particular has seen some record prices being achieved along with competitive bids.

In neighbouring Victoria Park, named as one of the best places to live by The Sunday Times in 2020 and in 2022, the prime rental market has evolved over recent years, drawing renters to its relaxed, friendly atmosphere. Demand here is fuelled by a combination of its village-like feel, independent shops, cafés and pubs – not to mention the 86 hectares of parkland.

Predominantly a family market, Victoria Park retained a lot of its residents during the pandemic, which has only added to the lack of stock coming to the market. As a result, those properties that do become available are able to achieve higher prices than in previous years.

As tenants who favoured more rural locations during the pandemic head back to towns and cities in response to the easing of coronavirus measures, the London rental market is certainly back and likely to be boosted further by the return of international students and corporate relocations, all focused on proximity to places of study, work and transport links.

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