London Rental Market: A 2025 Outlook for the Global Mobility Industry
As we move into 2025, the London rental market is undergoing significant shifts, shaped by economic factors, policy changes, and market dynamics. For HR teams, global mobility professionals, and employees relocating to London for work, understanding these developments is essential for making informed housing and relocation decisions.This analysis provides a detailed outlook on London’s lettings market, highlighting current trends and future projections to assist those managing work-related relocations in the UK capital.
Analysing Rising Rents: Implications for Employee Relocations
According to the HomeLet Rental Index, rental prices in the UK have been steadily increasing, with the average rent in the UK being £1,229 per month as of June 2023. This represents a 10.4% increase from the previous year. The average monthly price in London has risen by 1.9% since last month to £2,077 PCM, which is 12.5% higher than in June 2022. Rising rents have become a significant concern, making it increasingly difficult for employees relocating to the country to find affordable housing. This article examines the main factors driving this trend, including housing supply and demand imbalances, inflation, and legislative changes, and discusses the implications for employee relocations.
