London has seen its biggest drop in rents since last spring, new data shows.
A report by SpareRoom, using data from the last quarter of 2020, found that room rents in the capital were on average 8 percent lower than in the last quarter of 2019.
London’s population is declining for the first time in 30 years. The coronavirus may have left the capital after infecting some 700,000 people born in foreign countries, according to the government-funded Center for Economic Statistics (ESCoE).
Earlier this month, PwC predicted London’s population would shrink by 300,000 this year due to an increase in the number of home-based workers, the relocation of graduates to the city, fewer jobs and a drop in immigration to the UK. due to Covid- 19. and Brexit.
The parts of London that saw the biggest drop in rents were typically the most expensive central neighborhoods. Eight of the 10 London postal codes that have seen the biggest price drop are in the travel zone (the most central part of the city).
Only nine of London’s 120 postcodes saw an increase in rents compared to the same period in 2019, and all were outside the first and second zones.
The postal index with the lowest rent last year was the EC3 (Aldgate), with a price drop of 26 percent on average. In SW1 (Westminster / Belgravia / Pimlico) rents fell 23 percent, and thirdly, in EC2 (Bishopsgate / Cheapside), prices fell 21 percent.
A complete list of the most rented places:
Meanwhile, rents outside the city center have risen the most since 2019. The biggest jump in prices was SE20 (Penge) and N12 (North Finchley), both by 8 percent. This was followed by a five percent increase in E4 (Chingford) and a four percent increase in SE7 (Charlton).
Complete list of most rented places:
The most expensive place to rent a room in London is still EC4 (St Paul’s); Average monthly rent here is £ 1,262, followed by SW7 (South Kensington / Knightsbridge) at £ 1,103 and SW3 (Chelsea) at £ 987.
SpareRoom director Matt Hutchinson said the numbers showed the biggest drop to date since the London rental spring and “there is no sign of an immediate improvement.”
He added: ‘The first national lockout made people think twice, especially about living in London. With another lockout, it’s hard to see it change anytime soon.