Nearly every borough in London saw the price of renting increase throughout 2015, as strong demand propped up the private rented sector and saw more and more landlords able to increase what they are charging.
Benham & Reeves Residential Lettings said that for a number of reasons, Londoners now see renting a home as a more financially viable alternative to buying. Things such as changes in stamp duty charges, fluid job markets and the way many overseas professionals are taxed in the UK means that it is far more preferable to rent.
The figures from the company for 2015 show that every single market in zones 1 and 2 in London saw rental prices increase last year by more than four per cent. In fact, only two areas of the capital - Richmond-upon-Thames and a small area around Edgware Road in central London - experienced any falls in the price of renting at all in 2015.
The largest rental increases for the year were seen in Hackney, where prices jumped by an impressive 33 per cent compared to those experienced in 2014. Other areas of the city - Bow, Bethnal Green and Haringey - also saw prices grow by double digit figures.
"George Osborne has done more for the rental market than any other chancellor in history. Thanks to the changes in stamp duty rates, he has made renting long term a more attractive option for many tenants. Couple that with the fact that many overseas tenants can write their rent off against tax but must pay capital gains on any property they own and renting becomes a no brainer," said Marc von Grundherr, the firm’s lettings director.
"We are advising landlords who are already in the market to hang onto the properties, and not be tempted to sell ahead of changes to wear and tear allowance and mortgage relief," he added, insisting that the long-term prospects for London's rental market are very strong.
For 2016, the company also said the prospects for the capital are good, with new regulations coming in this year only likely to push more people towards renting rather than buying homes.