Rental growth in London is at a four year high of 2.8%, according to a study by real estate company Zoopla.
Zoopla’s rental market report said the annual rate of UK rental growth for new listings has also increased by 2.6%, up from 1.4% compared with last year, and the highest growth for three years on tightening supply and rising demand.
According to the report the available supply of homes for rent per estate agent branch is 20% lower than in 2017.
It also recorded a 4% increase in the supply of homes available to rent over the last two years, while demand for rented homes has increased by 8% over 2019 alone.
The report also said average rental value (£pcm) is £889, an increase of £23 since last year.
Although the report is concentrated on rental in London and the south east, it also revealed the other cities in the UK where rents are increasing, including Bournemouth, Bristol, Edinburgh, Leeds, Leicester, Liverpool, Norwich, Nottingham, Preston, Stoke and York, which have seen an increase in rents of 2.6% on average.
The only three cities which have experienced lowering private rents include, Aberdeen, Coventry and Middlesbrough.