Rental price growth in East London over the last seven years has significantly outperformed West London, with renters in East London seeing twice the growth of their West London counterparts, new research has found.

Landbay’s most recent Rental Index revealed that, of the nine East London boroughs, the average cumulative rental growth since January 2012 is 21.41%, with typical rents standing at £1,241 per month. Barking and Dagenham saw the highest level of growth at 27.66%, followed by Waltham Forest and Bexley at 23.56% and 22.02% respectively.

The only East London borough that did not make it into the top ten areas of rental growth is Greenwich, which was still above the London average at 15.48%.

In contrast, the twelve West London boroughs have experienced average growth of just 10.79% over the past seven years, with West London rental prices at £1,456. The West London borough with the lowest growth of rental prices was Hammersmith and Fulham at 5.73%, and was followed by Richmond upon Thames and Kingston upon Thames at 6.14% and 8.04% respectively.

Furthermore, boroughs in Central-West London reported even lower growth, with Camden seeing rental price growth of just 3.78%, while Westminster and Kensington and Chelsea actually experience negative growth over the period, at -0.77% and -2.31% respectively.

However, when inflation is taken into account, the figures “are ever starker”. In real terms, renters in 21 of the 33 London boroughs have seen a fall in rent. Of these, only one is in East London (Greenwich at 15.48%), while the vast majority of those in West London have seen falls, just two have seen rents rise faster than inflation – Hillingdon (17.12%) and Sutton (16.82%).

Commenting, Landbay CEO and founder John Goodall: “We are seeing a cultural shift in London, as demand climbs in the East and traditionally popular areas like Westminster and Chelsea slide down the league tables. While part of this is a function of affordability, other things too are at play. Rising employment and a thirst for flexible living mean renting is more attractive than ever, with a widening commuter belt in the face of developing infrastructure like Thameslink and Crossrail.

“Brokers need to be hyper-aware of fluctuations in regional rents, making the most of the yield opportunities for landlords and maximising profits where possible.”

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