Landlords in London have experienced significant increases in rents, surpassing all other regions in Great Britain, according to data from Benham and Reeves.

Benham and Reeves conducted an analysis of the latest rental market data from the Office for National Statistics (ONS), examining the annual change in average monthly rent across regions of Britain and at the local authority level.

The average cost of renting in Britain rose by 9.1% overall, reaching £1,246 by March 2024.

London led the regional rankings, with rents increasing by 11.2% year-on-year. Scotland was the only other area to see double-digit rental growth, at 10.5%.

At the local authority level, Brent experienced the highest rental growth in the UK, with costs rising by 27% in a single year, pushing rents to £1,940 per month from £1,527 in 2023. Additionally, two other London boroughs, Greenwich (15.8%) and Islington (14.2%), witnessed significant increases.

Outside London, Folkestone and Hythe saw the second-largest increase in rental values across Britain, up by 22.5% annually. Birmingham ranked seventh with a 14% increase, while Oldham (13.9%) and Ipswich (13.3%) placed ninth and tenth respectively.

However, three Scottish locations – Lothian (15.7%), West Dunbartonshire (14.4%), and Argyll and Bute (14.0%) – also made it into the top 10.

In Scotland, rent increases were prohibited between September 2022 and April 2023, after which they were capped at 3% in most cases until the end of March 2024, when the cap expired. The potential reintroduction of rent controls remains uncertain, with commentators suggesting that previous policies may have contributed to rent increases.

Marc von Grundherr, director of Benham and Reeves, commented, “The allure of London is as strong as ever and that’s being seen on the ground, as properties are being let a matter of hours after being listed."

“Demand is especially fierce in Brent, Greenwich, and Islington, where rental properties are commanding considerably stronger rents than they were just a year ago, which will bring some positive news to landlords despite the challenges of dealing with higher mortgage rates and energy costs."

“We’re seeing some huge increases in rents of late, some to the tune of 45%, but this high rental growth isn’t just confined to the capital."

“There’s been strong increases across every region, but especially Scotland."

He added, “So while some landlords may have chosen to exit the sector, the high tenant demand for rental properties has only served to make renting out properties more profitable for those sticking it out.”