Rents in this part of London rose faster than anywhere else in the capital last year
Shoreditch has claimed the crown as the most in-demand spot in the capital for renting, although the rate of increase still remains below 2022 levels.
Rents in the trendy area, known for everything from tech start-ups to vintage clothes shops, climbed by 6.6 per cent per month in 2024.
Across London as a whole, the average rent climbed by 4.3 per cent per month last year, according to estate agents Benham and Reeves.
“Whilst 2024 may have been an uncertain year for the London housing market, the capital’s rental market continued to experience huge demand from tenants and we’ve seen the rents achieved across all of our offices trend upwards over the course of last year,” director of Benham and Reeves, Marc von Grundherr, said.
Canary Wharf and Ealing both saw average monthly rental growth increases of 5.9 per month, whilst Kew and Hampstead also ranked within the top five strongest rental markets.
Why is Shoreditch so popular?
Well-connected and home to a range of bars, restaurants and an increasing number of experiential leisure venues – which have proved especially popular with younger generations – Shoreditch is a more relaxed and often cheaper alternative to West London.
While the area has been significantly gentrified since a mid-2010s influx of wealthy Londoners, which led to a boom in house prices, rents, and coffee shops, it is still considered a more creative and innovative area than other ‘prime’ locations.
Shoreditch is also home to ‘Silicon Roundabout’, a significant cluster of small tech firms around the Old Street roundabout.
Von Grundherr added that demand from international students as well as families looking to relocate to the UK has particularly driven demand recently, with both “utilising the rental market to try before they buy in their neighbourhoods of choice.”
London is home to a third of the country’s international students, according to the ONS.
Rents near 40 per cent of income in London
However, there are some who will be less than pleased with the increase in rents: those saving up for a home.
Between 2019 and 2014, the average rental price in Shoreditch increased by a whopping 53.4 per cent, according to research from Spareroom.
London remains the least affordable region in the UK, although it boasts the highest salaries.
The average Londoner spends around 40 per cent of their monthly income on rent alone, up from a third two years ago according to Statista.
Demand for rental units nonetheless continues to outpace supply, Jeremy Leaf, north London estate agent and a former RICS residential chairman, said.
He attributed some of the imbalance to landlords’ leaving the sector when tenancies end in response to tax and imminent regulatory changes.
Leaf suggested that rents may “soften in time” as hoped-for rent increases from landlords come up against an affordability ceiling.
“We are certainly starting to see some reductions compared with this time last year when you compare similar properties and the rents achieved.”