Market Update 2023
Rental Price Trends
Rental prices in Zone 1 increased by approximately 10-15% year-on-year due to high demand and limited availability.
Prime Central London (PCL) areas such as Mayfair, Knightsbridge, and Kensington saw rents reaching record highs, with average rents surpassing £1,000 per week in some locations.
The average one-bedroom flat in Zone 1 cost around £2,500-£3,000 per month, while two-bedroom flats ranged from £3,500-£5,500 per month depending on location.
Supply & Demand Dynamics
Strong tenant demand: The return of international students, corporate relocations, and high-net-worth individuals drove demand for rental properties.
Supply shortages: Many landlords exited the market due to increased regulations, tax burdens, and rising mortgage rates, leading to fewer available rental properties.
Properties in Battersea, South Bank, and the City of London saw increased interest from professionals and young renters seeking central locations.
Market Influences
Higher interest rates: The Bank of England’s rate hikes discouraged home purchases, pushing more people into the rental market.
Cost of living crisis: Rising energy costs and inflation made affordability a concern, especially for mid-range renters.
Regulatory changes: Proposed rental reforms (such as the Renters’ Reform Bill) created uncertainty among landlords, some of whom sold their properties, reducing rental stock.
In summary, in 2023, the rental market in London Zone 1 saw strong demand, continued rental growth, and an ongoing supply shortage.
Contact Us
Get in touch with our team who would be happy to assist
