Rental Growth Highest in Battersea and Clapham
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Area sees 28.8 per cent growth in rental prices

The cost of renting in Battersea and Clapham increased by 28.8 per cent throughout 2011, marking a higher rate of growth than any other Greater London postcode, according to a new quarterly research series launched today by Hamptons International.  NW1, around Camden and Regent's Park, saw the second highest rental growth at 20.1 per cent. 

Collaborating with PrimeLocation.com to analyse more than 6,500 property listings, Hamptons International has calculated the top performing London postcodes for house price growth in 2011

Adam Challis, Head of Research at Hamptons International, who analysed the data, commented on the findings: "Battersea, Clapham and Camden are traditional enclaves for young professional tenants, offering fantastic lifestyle amenities as well as great transport links for access across London.

"With a distinct lack of one and two bedroom properties, the most popular type of housing amongst this demographic, we are seeing significant rental price rises in these areas." 

Greater London's Best Performing Rental Growth Postcodes

Top 5

Q4 2010(psf)

Q4 2011 (psf)

YoY Growth

SW11 (Battersea/Clapham)

£26.25

£36.89

28.8%

NW1 (Camden/Regent's Park)

£36.51

£45.71

20.1%

NW8 (St John's Wood/Primrose Hill)

£42.86

£53.33

19.6%

SW7 (Knightsbridge/South Kensington)

£55.67

£63.88

12.9%

W2 (Notting Hill/Paddington)

£40.37

£45.88

12.0%

 

As well as analyzing the performance of Greater London's postcodes, the research has also uncovered Greater London's most and least expensive rental properties.  Using a Pound per Square Foot (psf) basis to calculate rental values, Hamptons International has found that SW7 is the most expensive postcode in London in which to rent, with an average two bed flat (650 sqf) costing almost £4,000 per month.  Conversely, the regeneration area of Plaistow in East London is the least expensive place in Greater London to rent a home, with average prices of £16 psf, equating to £867 per month for a two bed flat.

London's Most Expensive Rentals

Postcode

Q4 2011 (psf)

Equivalent monthly rental for a 650 sq ft two bed flat

Greater London

£45

£2,427

SW7 (South Kensington & Knightsbridge)

£73

£3,954

W11  (Notting Hill & Holland Park)

£70

£3,792

SW1 (Belgravia)

£69

£3,738

SW3 (Chelsea)

£62

£3,358

W1 (Mayfair)

£59

£3,196


London's Least Expensive Rentals

Postcode

Q4 2011 (psf)

Equivalent monthly rental for a 650 sq ft two bed flat

E13 (Plaistow)

£16

£867

BR3 (Beckenham)

£16

£867

SE15 (Peckham)

£16

£867

HA7 (Stanmore)

£17

£921

SE23 (Forest Hill & Honor Oak)

£18

£975


Examining the data to uncover the opportunities for buy to let investors, the Hamptons International research highlights hotbed rental locations across the Greater London market.

Postcode Yield in Q4 2011

Postcode

Yield in Q4 2011

Greater London average

5.5%

Prime London average

4.2%

E3 (Chingford)

11.4%

WD6  (Borehamwood)

10.9%

E16 (Canning Town)

8.9%

BR1 (Bromley)

8.1%

NW9 (Colindale & Kingsbury)

8.1%


In Central London, which has typically offered a lower yield due to rental demand and strong capital growth prospects, investors are attracted by higher yields in popular rental locations such as Clapham, Putney, Fulham and Islington.

Adam Challis concluded "With growing rents and stock shortages for smaller properties, investors have a fantastic opportunity to get hold of great residential investment properties at the moment - particularly one and two bed units.  Residential property provided some of the best returns of any asset class throughout 2011."


The Hamptons International quarterly research series is based on data from PrimeLocation.com. The Q4 2011 analysis is based on more than 3,300 individual rental records. All data is cleansed to remove duplicate and old listings, as well as any erroneous information, in line with the standard methodology as developed by Data & Research team at PrimeLocation.com.

For media enquiries please contact:
Aisling Gray, Senior PR Manager, Hamptons International
020 7758 8422/ 0778 611 8634/graya@hamptons-int.com  

For research enquiries please contact:
Adam Challis, Head of Research, Hamptons International
020 7758 8438/ 07760 163 120/ challisa@hamptons-int.com

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