Rents in England's capital, London, declined by *** percent annually as of January 2025. Nevertheless, many boroughs recorded growing rental prices, with Bromley and Croydon observing double-digit growth. Across the region, Croydon, Barking, Dagenham, and Havering ranked as some of the most affordable areas to rent. As shown by the Index of Private Housing Rental Prices, rents in the UK have soared since the COVID-19 pandemic.

Between 2008 and 2024, the average weekly rent for private renters in England has shown a significant increase. In the 2009, the average rent was 153 British pounds, and by 2024, it had risen to 237 British pounds. Excluding London, the average rent started at 130 British pounds in 2009 and reached 191 British pounds in 2024, demonstrating a similar upward trend but at a lower rate compared to the overall average in England. Rental households in England Renting is common in England. Nearly one in five households occupied a dwelling that was privately rented in 2024. While the majority of households in the country live in an owner-occupied home, this percentage has declined since the early 2000s. Meanwhile, the share of households occupying a private rental has doubled over the past decade. This shows a growing rental sector and a shift in tenure trends in the country. Buying vs renting costs For a long time, the average monthly costs of buying a home were lower than renting. In 2021, housing costs started to increase steeply, closely followed by rental costs. This resulted in the gap nearly closing in 2023. This trend can also be observed through the house price to rent ratio - an index that follows the development of house prices relative to rents, with 2015 as a baseline year. Between 2015 and 2022, the ratio grew steadily, indicating that property prices rise faster than rents. However, with rental growth accelerating and catching up with property prices in 2022, the index declined notably.

The prime property rental real estate market in Outer London is expected to see an overall increase in rental rates during the ********* period between 2025 and 2029. Over the ********* period, the cumulative prime rental growth is forecast at **** percent. Nationwide, residential rents have soared since 2021, with the annual rental growth peaking at over **** percent in **********.

Median monthly rental prices for the private rental market in England by bedroom category, region and administrative area, calculated using data from the Valuation Office Agency and Office for National Statistics.

The average agreed rent for new tenancies in the UK ranged from *** British pounds to ***** British pounds, depending on the region. On average, renters outside of London paid ***** British pounds, whereas in London, this figure amounted to ***** British pounds. Rents have been on the rise for many years, but the period after the COVID-19 pandemic accelerated this trend. Since 2015, the average rent in the UK increased by about ** percent, with about half of that gain achieved in the period after the pandemic. Why have UK rents increased so much? One of the main reasons driving up rental prices is the declining affordability of homeownership. Historically, house prices grew faster than rents, making renting more financially feasible than buying. In 2022, when the house price to rent ratio index peaked, house prices had outgrown rents by nearly ** percent since 2015. As house prices peaked in 2022, home buying slowed, exacerbating demand for rental properties and leading to soaring rental prices. How expensive is too expensive? Although there is no official requirement about the proportion of income spent on rent for it to be considered affordable, a popular rule is that rent should not exceed more than ** percent of income. In 2024, most renters in the UK exceeded that threshold, with the southern regions significantly more likely to spend upward of ** percent of their income on rent. Rental affordability has sparked a move away from the capital to other regions in the UK, such as the South East (Brighton and Southampton), the West Midlands (Birmingham) and the North West (Liverpool, Manchester, Blackpool and Preston).

Housing Research Notes are a series of analytical reports from the Greater London Authority focusing on individual issues of relevance to housing policy in London. The most recent Housing Research Note (published in November 2023) estimates the annual cost to the NHS of homes in poor condition in London. It also estimates the cost of repairing all the homes in London that are in poor condition, calculating how long it would take the savings to pay off the repair costs. The analysis is broken down by tenure and compared with the same figures for the rest of England. Previous Housing Research Notes have analysed topics including housing supply, Help to Buy policy, short-term lettings, international comparisons, the factors behind increasing private rents and race equality. The Housing Research Notes are listed below in reverse date order: HRN 11 (2023) The cost of poor housing in London (November 2023) HRN 10 (2023) The affordability impacts of new housing supply: A summary of recent research (August 2023) HRN 09 (2023) Understanding recent rental trends in London’s private rental market (June 2023) HRN 08 (2022) Housing and race equality in London (March 2022) HRN 07 (2021) Who moves into social housing in London? (November 2021) HRN 06 (2021) An analysis of housing floorspace per person (February 2021) HRN 05 (2020) Intermediate housing: The evidence base (August 2020) HRN 04 (2020) Short-term and holiday letting in London (February 2020) HRN 03 (2019) Housing in four world cities: London, New York, Paris and Tokyo (April 2019) HRN 02 (2018) Help to Buy in London (September 2018) HRN 01 (2018) The profile of London's new homes in 2016/17: Analysis of the London Development Database (May 2018)

This statistic displays the cost of 'small shed' and 'big shed' secondary industrial warehouse space per square foot in London, United Kingdom (UK) in ********* by area. The price per square foot of smaller industrial warehousing was more expensive than that of larger warehousing, with the exception of Barking and Dagenham. Other factors that could affect pricing included proximity to major road systems and key population areas, as well as the price of developing land and staff costs. Prices for secondary small shed real estate in the London area were highest in Acton and Park Royal where rents amounted to ** British pound per square foot.

In the five-year period between 2025 and 2029, the prime residential rent for existing properties in Greater London is expected to increase by 17.1 percent. The highest percentage change is expected to occur in 2025 and 2029, when rents are to rise by 3.5 percent. In the UK, rental growth has accelerated notably since 2021, with March 2024 experiencing a decade-high annual percentage growth. The trend reflects the complex interplay between housing affordability, mortgage rates, and supply of rental homes as the UK housing market navigates a period of transition.

This statistic displays the prime headline costs of warehouse rent across European cities as of the first half of 2021 in euros, per square meter per month. In this case, according to the source, prime warehouse locations have been categorized as spaces that are deemed to be at the top open-market tier of rent up to ************** square meters. The warehouse rents included spaces that are of grade A quality in the best locations in the market, with up to ** percent of the space dedicated to offices and between * and 10-meter ceiling height.

London soars in price
Due to its central location and capabilities of worldwide distribution, warehouse space in London had the highest monthly price at **** euros per square meter, as of the first half of 2021. At the other end of the table was the Polish city of Łódź with prime headline rents of *** euros per square meter per month.

UK prime warehouse rents
The price per square foot of smaller industrial warehousing was more expensive than that of larger warehousing. Other factors that could affect pricing included location, proximity to major road systems, key population areas, price of developing land and staff costs. Prices for prime small shed real estate in the United Kingdom (excluding London) as of the first half of 2021 varied from ** British pounds in Borehamwood to five British pounds in Belfast. Inside of London, prime rental costs can reach as much as ** British pounds per square foot.

In the first quarter of 2025, London West End - Bond Street was the most expensive location for prime high street rents in the UK, with prices reaching 2,500 British pounds per square foot. The West End was ranked ahead of London City, which came in third. In Manchester, the annual costs of rental per square foot of prime retail real estate amounted to 235 British pounds. Retail warehouses Retail warehouses typically range from 50,000 to hundreds of thousands of square feet. They are used for keeping and distributing inventory. Retail warehouses include loading docks, truck doors and large parking lots; also, they may contain a limited amount of office space. Prime retail warehouse properties belong to the wider category of industrial property, along with other real estate types, such as distribution buildings, showroom facilities, manufacturing buildings, cold storage facilities, telecom or data hosting centers, "flex" buildings denoting more than one industrial or commercial facility housed in the same building, and finally R&D buildings. Prime yields of high street retail across Europe Retail real estate prime yields in Europe were the lowest in Zurich, Switzerland, and the highest in Bucharest, Romania in 2025. As could be expected, larger cities in Europe tended to produce lower yields, due to the lower risk associated with these markets. Locations with lower yields tend to have steady occupancy rates and rental growth.

In January 2025, the average monthly rent in Greater London reached ***** British pounds, confirming its position as the most expensive area for private tenants. Rental prices across England stood at ***** British pounds, while the average for Great Britain was recorded at ***** British pounds. The North East remains the most affordable region, with rents at 710 British pounds. According to the UK Price Index of Private Rents (PIPR), rental growth has accelerated since 2021, with the cost of rental properties rising by nearly **** percent annually in January 2025.

The cost of rent for office space in London is the highest in Europe. In the fourth quarter of 2023, the West End had average rents per square foot of *** British pounds. The average annual rent in London for prime office space was substantially higher than in any other European market. Prime yields For commercial real estate investors, prime yields in London averaged **** percent in 2023. As compared to the rest of the United Kingdom, yields for prime office space in London were notably lower. Commercial investments Office real estate, which comes under the broader term of commercial real estate, traditionally accounts for the lion's share of commercial real estate investments. In recent years, however, this share has been gradually declining. Despite this trend, the UK is one of the leading office real estate investment markets in Europe.

It can be seen that the largest prime rent for office properties in London West End was found in the districts of St James's and Mayfair at that time, both with a prime rent of *** British pounds per square foot as of the third quarter of 2020. Prime rents in most West End districts did not change between 2019 and 2020, except in Victoria and King's Cross. In 2021, rents in most London districts remained unchanged.

Amsterdam is set to maintain its position as Europe's most expensive city for apartment rentals in 2025, with median costs reaching 2,500 euros per month for a furnished unit. This figure is double the rent in Prague and significantly higher than other major European capitals like Paris, Berlin, and Madrid. The stark difference in rental costs across European cities reflects broader economic trends, housing policies, and the complex interplay between supply and demand in urban centers. Factors driving rental costs across Europe The disparity in rental prices across European cities can be attributed to various factors. In countries like Switzerland, Germany, and Austria, a higher proportion of the population lives in rental housing. This trend contributes to increased demand and potentially higher living costs in these nations. Conversely, many Eastern and Southern European countries have homeownership rates exceeding 90 percent, which may help keep rental prices lower in those regions. Housing affordability and market dynamics The relationship between housing prices and rental rates varies significantly across Europe. As of 2024, countries like Turkey, Iceland, Portugal, and Hungary had the highest house price to rent ratio indices. This indicates a widening gap between property values and rental costs since 2015. The affordability of homeownership versus renting differs greatly among European nations, with some countries experiencing rapid increases in property values that outpace rental growth. These market dynamics influence rental costs and contribute to the diverse rental landscape observed across European cities.

The monthly house price index in London has increased since 2015, albeit with fluctuation. In August 2025, the index reached 99.1, which is a slight decrease from the same month in 2024. Nevertheless, prices widely varied in different London boroughs, with Kensington and Chelsea being the priciest boroughs for an apartment purchase.

The majority of private landlords in England raised the rent on the most recent letting or extension in line with market rents in the area. This reason was chosen by ** percent of the respondents. Additionally, ** percent were advised by their agent. Additional costs incurred by landlords, such as mortgage costs, renovation, and tax changes, also played a significant role. In the UK, rental growth started to accelerate in 2021, with the year-on-year increase in the Price Index of Private Rents (PIPR) peaking at *** percent in March 2024.

The cost of 'small shed' and 'big shed' prime industrial warehouse space per square foot in London, United Kingdom (UK) were the highest in Park Royal and Canning Town, where rents amounted to ** British pound per square foot as of January 2021. The price per square foot of smaller industrial warehousing was more expensive than that of larger warehousing. Other factors that could affect pricing included proximity to major road systems and key population areas, as well as the price of developing land and staff costs.

In 2022, house price growth in the UK slowed, after a period of decade-long increase. Nevertheless, in June 2025, prices reached a new peak, with the average home costing ******* British pounds. This figure refers to all property types, including detached, semi-detached, terraced houses, and flats and maisonettes. Compared to other European countries, the UK had some of the highest house prices. How have UK house prices increased over the last 10 years? Property prices have risen dramatically over the past decade. According to the UK house price index, the average house price has grown by over ** percent since 2015. This price development has led to the gap between the cost of buying and renting a property to close. In 2023, buying a three-bedroom house in the UK was no longer more affordable than renting one. Consequently, Brits have become more likely to rent longer and push off making a house purchase until they have saved up enough for a down payment and achieved the financial stability required to make the step. What caused the recent fluctuations in house prices? House prices are affected by multiple factors, such as mortgage rates, supply, and demand on the market. For nearly a decade, the UK experienced uninterrupted house price growth as a result of strong demand and a chronic undersupply. Homebuyers who purchased a property at the peak of the housing boom in July 2022 paid ** percent more compared to what they would have paid a year before. Additionally, 2022 saw the most dramatic increase in mortgage rates in recent history. Between December 2021 and December 2022, the **-year fixed mortgage rate doubled, adding further strain to prospective homebuyers. As a result, the market cooled, leading to a correction in pricing.

Prime locations for shopping centers include main streets and city centers of European cities, and factors such as the main flow of customers, the amount of space to handle the sales volume expected, as well as the direct competition and neighbors all have a great impact on projected sales. Specifically, space requirements must be carefully tailored to usage requirements, as rent typically proves to be high.

Rental prices of prime shopping centers real estate in Europe

According to the data presented, the most expensive retail space in shopping centers was rented out in Frankfurt, where on average prices were 280 euros per square meter per month as of June 2021. In comparison, the most expensive cities for high street retail were London and Paris, where monthly prime rents were close to 2,000 euros per square meter.

Coronavirus and commercial real estate

Among the many impacts of the coronavirus (COVID-19) are the drop in foot traffic and sales at high street shops and shopping centers due to the lockdown and social distancing measures, but also the increase of e-commerce. Shopping out of the convenience of your own home increases the focus on the importance of logistical warehousing real estate.

In the second quarter of 2025, London (West End) was the market with the most expensive prime office space worldwide. The net effective cost for a prime office in London cost close to ****** U.S. dollars annually. In second and third markets in the ranking, Hong Kong and Midtown New York, prices also exceeded *** U.S. dollars per square foot, with Hong Kong at ****** U.S. dollars and New York Midtown at ****** U.S. dollars. The global office real estate sector was severely affected by the coronavirus pandemic and the political and economic uncertainty that followed. With many companies placing expansion plans on hold and transitioning to hybrid working models, vacancies across many markets spiked and leasing activity slowed down.