Bumper Guide to the East London Lettings Market
Overview
East London has seen a significant increase in rental values. The prime rental market in North and East London recorded a 15.2% increase on an annual basis. Areas like Hackney and Victoria Park are particularly popular, attracting young professionals, creatives, and families due to their connectivity, community spirit, and green spaces.
Average rental prices
By property type: (average monthly price)
| One bedroom | £1,200 to £1,500 |
| Two bedrooms | £1,700 to £1,900 |
| Three bedrooms | £2,200 - £3,000 |
By borough: (median monthly price for three bedrooms)
| Newham | £2,000 |
| Barking and Dagenham | £1,700 |
| Hackney | £2,900 |
| Tower Hamlets | £2,675 |
| Waltham Forest | £2,000 |
| Redbridge (incl. Ilford) | £1,950 |
| Havering | £1,700 |
Tenant demand:
East London has experienced a surge in tenant demand, especially in areas like Hackney, which saw a 23% increase in applicants registering to rent compared to the previous year. This high demand has led to a supply and demand imbalance, resulting in competitive bids and record rental prices.
Market trends:
Many tenants who preferred rural locations during the pandemic are now returning to urban areas like East London, boosting the rental market. The return of international students and corporate relocations is also expected to benefit the rental market, focusing on proximity to places of study, work, and transport links.
Great locations to invest in:
Forest Gate and Stratford: Both areas are situated on the Elizabeth line, providing excellent connectivity to central London. Stratford, in particular, has seen significant development with the Westfield Stratford City shopping centre and the Olympic Park, making it a hub for both retail and recreation.
Upton Park: The development of Upton Gardens has transformed this area, attracting professionals who work in central London due to its 30-minute commute via Upton Park station. New commercial investments and stores have also enhanced the local amenities and appeal.
Sporting events and festivals:
The Queen Elizabeth Olympic Park and Copper Box Arena host numerous sporting events and festivals throughout the year, bringing vibrant energy to the area. These venues attract visitors and residents alike, adding to the desirability of East London.
Schools in East London:
East London is home to numerous schools, many of which are within walking distance from residential areas. This makes it an attractive option for families with young children looking for convenient and quality education options.
Business and commercial hub:
East London is increasingly becoming a hub for businesses, both large and small, due to its affordability compared to central London. Notable examples include BT Studios and several government departments and public sector bodies, which are based in the area, boosting local employment opportunities.
Universities in East London:
The University of East London has two campuses in the area, as well as Queen Mary University which is part of the prestigious Russell Group. These universities attract a steady influx of students each year, ensuring a consistent demand for quality accommodation, making it an ideal market for landlords.
Legal Requirements
Landlords must ensure their properties comply with current legislation, including conducting right to rent checks, annual gas safety checks, and ensuring properties have valid Energy Performance Certificates (EPCs). **Selective Licensing** is also required in many areas of London. Landlords must pay for a license, and they can check if it's applicable to their area on the government website. For instance, in Newham, only the Olympic Park and Royal Victoria areas are exempt from selective licensing as of November 2024.
Honest Lettings
At Honest Lettings, we specialize in managing properties in East London. Our team is dedicated to ensuring your rental property meets all legal requirements and is well-maintained, providing peace of mind for both landlords and tenants. We help you find the best tenants and achieve the highest rents through our deep understanding of the local market. Additionally, we work with Newham Council to find housing for tenants on housing benefits, showcasing our wide range of sources to secure excellent tenants.