Hackney sees fastest growth in home rents over past decade
Hackney in east London has seen Britain's fastest growth in rents on a typical two-bedroom home over the past decade, analysis has found.
Since 2008 the cost of renting a two-bed home in Hackney has surged by nearly two-thirds (63%) to £1,755 per month, Rightmove found.
As well as becoming a hipster hotspot, Hackney's appeal has been enhanced by the 2012 London Olympics effect, the report said.
London boroughs dominated the list of places with the fastest growth in rents, with a 59% increase in Hammersmith and 52% in Walthamstow.
Rightmove's housing market analyst Miles Shipside said: "Hackney has seen pretty heady increases in both asking rents and house prices in the area over the past 10 years, as it has been transformed from a cheaper location into a more popular and higher-priced address.
"Its rise has been enhanced by the 2012 Olympics effect and improvements to transport links with rents peaking in the second quarter of 2016 and plateauing in recent years."
Just outside London, commuter belt areas such as Dartford, Gillingham and Hemel Hempstead have seen particularly large rises in rents, Rightmove found.
There have also been some big increases in Scotland, with Dundee and Edinburgh on the list of places outside London which have seen the biggest rises.
Renters looking to see their money go further may want to consider Burnley, Barnsley or South Shields, where tenants could rent around four two-bedroom homes for the price of one in Hackney.
Swansea and Kilmarnock are also among the places where Rightmove found it is still relatively cheap to rent.
Mr Shipside continued: "Although the growth in asking rents has slowed over the past few years, people new to the rental market or those looking for a bigger property could find that they need to look further out than their initial wish-list of places, especially in the bigger cities around the country.
"A look at the first few months of this year shows the usual seasonal trend of asking rents falling slightly compared to the last quarter of last year, but we're likely see a rise again next quarter.
"London asking rents remain flat compared to this time last year, a sign that we are highly unlikely to see the same big increases over the next 10 years that we've seen in some areas in the capital over the previous 10 years."
Here are the 10 places in London with the highest growth in asking rental prices for a two-bedroom home between 2008 and 2018, according to Rightmove, with the average rent per month in the first quarter of 2018 followed by the increase over the past 10 years:
1. Hackney, £1,755, 63%
2. Hammersmith, £2,894, 59%
3. Rainham, £1,146, 58%
4. Southall, £1,353, 57%
=5. Hillingdon, £1,344, 55%
=5. Hayes, £1,346, 55%
7. Dagenham, £1,189, 54%
=8. Walthamstow, £1,393, 52%
=8. Harold Wood, £1,152, 52%
=8. Eltham, £1,217, 52%
The 10 places outside London with the highest growth:
1. Dartford, £1,063, 41%
2. Dundee, £568, 40%
=3. Bury St Edmunds, £885, 39%
=3. Edinburgh, £969, 39%
=3. Gillingham, £842, 39%
=6. Sevenoaks, £1,229, 38%
=6. Chatham, £830, 38%
=8. Waltham Cross, £1,091, 37%
=8. Bicester, £932, 37%
=8. Hemel Hempstead, £1,046, 37%
The cheapest areas by region, with the average asking rent for a two-bedroom property in the first quarter of 2018:
- Yorkshire and the Humber, Barnsley, £448
- North West, Burnley, £421
- North East, South Shields, £456
- West Midlands, Stoke-On-Trent, £464
- East Midlands, Alfreton, £475
- Scotland, Kilmarnock, £472
- Wales, Swansea £556
- South West, Bridgwater, £612
- South East, Margate, £665
- East of England, Great Yarmouth, £544
- London, Erith, Borough of Bexley, £1,072