London E14 most popular postcode to buy for residential rentals

UK city residential rental property is still highly popular, according to Skipton’s latest records. London tops the list, with demand for quality rental accommodation far outweighing supply, as workers return to their offices in droves.

UK city residential rental property is still highly popular, according to Skipton’s latest records. London tops the list, with demand for quality rental accommodation far outweighing supply, as workers return to their offices in droves.

Although all major UK cities are seeing growth in demand, it is London leading the charge as monthly rents surge. According to a recent report from *Zoopla, the average London rent in the first three months of 2022 was £995, up from £897 during the same period a year ago. This represents a strong 11% increase, with no signs of demand abating.

Skipton’s own figures show that London E14 is the most popular London postcode to buy for rental purposes, closely followed by SW11 (Wandsworth) and W3 (Acton). The popularity of E14 – London’s Canary Wharf, Poplar and Limehouse region – has remained high, as it also topped Skipton’s 2021 Buy-To-Let mortgage charts too.

Lorraine McLean, Mortgage Manager at Skipton, said: “Strong rental growth in the capital continues apace, and our mortgage pipeline is currently breaking all previous records.

“Whilst mortgage interest rates may be rising, it’s important to remember that over the last ten years or so, the Bank of England has kept the Base Rate exceptionally low. Having worked in the mortgage sector for 30 years, and with my knowledge of the sector historically, I would comment that an increase of 0.25% is relatively slight. In addition, when looking at long term trends, mortgage interest rates remain at a very low level.

“Purchasing a property in central London and the surrounding boroughs remains highly popular and I would urge anyone considering the purchase of a buy-to-let property to visit Skipton’s free online calculator.