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

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

Cheapest rental areas in each region

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