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Hackney sees fastest growth in home rents over past decade

Hackney in east London has recorded the fastest growth in rents on a typical two-bedroom home over the past decade, according to Rightmove.

Fresh analysis by the property website reveals that since 2008 the cost of renting a two-bedroom home in Hackney has increased by almost two-thirds - 63% - to £1,755 per month, supported in part by the 2012 Olympics effect and improvements to transport links, with rents peaking in the second quarter of 2016 and plateauing in recent years.

“Hackney has seen pretty heady increases in both asking rents and house prices in the area over the past ten years, as it has been transformed from a cheaper location into a more popular and higher-priced address,” said Rightmove’s housing market analyst Miles Shipside.

The top ten highest growth areas over the past decade are all in London, the list being a mixture of relatively more affordable areas like Dagenham and Eltham and areas like Harold Wood and Southall where upcoming Crossrail has pushed up rents.

“The growth in these areas compares with places like Barnes, Chelsea and Canary Wharf which seem to have topped out long ago as rents are pretty much the same as they were 10 years ago,” Shipside added.

Just outside London, commuter belt areas have seen a surge in rents, led by Dartford where asking rents are now over £300 more expensive than 10 years ago.

Further afield, Scottish cities, Dundee and Edinburgh, which have seen rental increases of 40% and 39% respectively. Renting a two-bedroom home in Edinburgh is now almost £1,000 a month, compared to just under £700 per month back in 2008.  

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.”

Top ten highest asking rent growth areas in London, 2008-2018

Area

Avg. asking rent

per month (2 bed) 

Q1 2008

Avg. asking rent

per month (2 bed) 

Q1 2018

10 year change

Hackney

£1,080

£1,755

63%

Hammersmith

£1,824

£2,894

59%

Rainham

£724

£1,146

58%

Southall

£864

£1,353

57%

Hillingdon

£866

£1,344

55%

Hayes

£868

£1,346

55%

Dagenham

£774

£1,189

54%

Walthamstow

£914

£1,393

52%

Harold Wood

£756

£1,152

52%

Eltham

£800

£1,217

52%

London average

£1,322

£1,648

25%

Top ten Highest asking rent growth areas outside London, 2008-2018

Area

Avg. asking rent

per month (2 bed) 

Q1 2008

Avg. asking rent

per month (2 bed) 

Q1 2018

10 year change

Dartford

£751

£1,063

41%

Dundee

£406

£568

40%

Bury St Edmunds

£635

£885

39%

Edinburgh

£697

£969

39%

Gillingham

£605

£842

39%

Sevenoaks

£888

£1,229

38%

Chatham

£601

£830

38%

Waltham Cross

£795

£1,091

37%

Bicester

£680

£932

37%

Hemel Hempstead

£764

£1,046

37%

National average outside London

£584

£678

16%

Cheapest rental areas in each region

Area

Region/Country

Avg. asking rent

per month (2 bed) 

Q1 2018

Barnsley, South Yorkshire

Yorkshire & the Humber

£448

Burnley, Lancashire

North West

£421

South Shields, Tyne And Wear

North East

£456

Stoke-On-Trent, Staffordshire

West Midlands

£464

Alfreton, Derbyshire

East Midlands

£475

Kilmarnock, Ayrshire

Scotland

£472

Swansea

Wales

£556

Bridgwater, Somerset

South West

£612

Margate, Kent

South East

£665

Great Yarmouth, Norfolk

East of England

£544

Erith, Borough of Bexley

London

£1,072

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