A big demand for apartments for rent in London, and Kensington and Chelsea in particular, has seen an annual rental increase of nearly 10 per cent on average for the area.
It brings the annual private rent in Kensington and Chelsea to £3,663. That was in April this year and was a 9.3 per cent rise on the April 2024 figure of £3,351. Rental income in London as a whole rose by slightly less – at 8.4 per cent.
Estate agency London: Landlords see profits rise
Drilling down further in to the figures for Kensington and Chelsea we can see that landlords of flats or maisonettes received an additional 9.8 per cent rental income over the past 12 months, while owners of semi-detached and terraced rentals benefited financially from a further 8.8 per cent.
The biggest jump in the cost of apartments for rent in London was for one bed properties. The rent for these increased by 10.2 per cent and for larger family homes with at least four bedrooms, the rent increased by 7.7 per cent. It brought the cost to rent a one-bedroom property in the area to around £2,595 a month. Two-bedroom properties came in at around £3,378. The average three-bedroom rental cost £4,018 a month, and that family home we mentioned earlier – which had increased by 7.7 per cent, now costs an average £5,660 a month to rent.
Of the type of properties in Kensington and Chelsea which are private rentals, semi-detached properties attract the most rent, with an average income of £4,776. Terraced properties were fetching landlords a monthly income of £4,504. Next most lucrative was apartments for rent in London at £3,020 per month, while detached properties in the area were attracting monthly rental income of £2,886.
But it’s not just in the prime and super-prime property market that landlords have benefitted from rental income rises. In the London as a whole, private rents increased to £2,246 from £2,071 on average.
Estate agency London: highest prices in London
The average house price in the Kensington and Chelsea area was £1,188,000 in March this year. That was the highest average price across the whole of London, according to the government’s Office of National Statistics who published the figures. It’s also far higher than the average house price for the whole of the UK which, in March this year was £271,000 (up from £255,000 in March 2024.
The latest average price of £1188,000 for Kensington and Chelsea is a 15.1 per cent drop compared to the same period in 2024. Then a house was typically selling for £1400,000 on average.
Estate agency London: price reductions for flats and detached homes
Both detached properties and apartments for rent in London fell by more than 10 per cent. The former saw a drop of 13 per cent and the latter 15.6 per cent. It meant that detached properties were selling for £4,146,000 on average, while flats are maisonettes were an average of £949,000.
Neither semi-detached properties (worth an average of £2,870,000) nor terraced homes (at £2,225,000) saw a fall in price.
When it comes to first-time buyers in the area, the average property price came in at £1,019,000 in March this year. That was a drop of 15.1 per cent compared to March 2024’s average figure of £1,200,000.
Estate agency London: contact us
Are you looking to invest in apartments for rent in London’s prime market? If so, then don’t hesitate to get in touch with our estate agency London experts. Tel Phillips Harrod: 0207 1234 152.
