_Where to invest: London's 2022 rental hotspots seeing surge in demand

As the property market rebounded from a 'work from home' order earlier in the year and the general direction of travel for many was back to the office and face-to-face learning at universities, colour flowed back into the cheeks of London's rental values.

Towards the latter stages of the year, Knight Frank reported a swell of corporate relocation enquiries of pre-Covid levels as international travel rules relaxed and demand surged, with the average quarterly rental value growth in prime central London at 4.2% in the three months to October. It is the highest figure since March 2011.

Of course, what will happen in London's rental market early next year will largely depend on the severity of the Omicron variant, its impact on how and where we live, travel, socialise and work and, of course, the government's response (still undecided at time of writing).

So, which areas have seen the strongest growth over the last six months and what does that tell us about how the lettings market will perform in 2022?

2022's London rental hotspots

• King's Cross
• Bayswater
• Wapping
• Canary Wharf
• Notting Hill
• St John's Wood

King’s Cross is the area of the capital that has seen the strongest growth since May (16.8%), underlining the strength of student demand. Nearby universities include Central Saint Martins, University College London and King’s College London.

Strong rental value growth in Bayswater (15.7%) is partly down to the ‘escape to the country’ trend. Many of those who moved west from London now want a 1 or 2-bedroom flat in Bayswater to have as a base in the capital as it’s so close to Paddington and Crossrail, poised to run in 2022 after a series of delays.

Strong rental value growth in areas like Wapping and Canary Wharf are explained by the fact more offices are now open, with many workers seeking a base close to work. This trend  is on course to continue if further lockdowns are avoided.

Meanwhile, Notting Hill and St John’s Wood have both benefitted from the ‘race for space’, with historically-low supply driving rents higher. If Covid measures tighten further, both areas – as well as Bayswater - may experience a further pick-up in demand.

We showcase 6 properties in the London areas that have seen some of the strongest rental value growth and are expected to be in high demand next year. Explore the selection from Bayswater to Canary Wharf.

Studio - 4-bedroom apartments in Gasholders, King's Cross

Prices from: £790,000

New apartments at canalside Gasholders, King's Cross, NC1.

1-bedroom flat, Bayswater, W2

Offers in excess of: £475,000

Arranged on the second floor of a well maintained building (with lift and porter) on Orsett Terrace, this one bedroom apartment offers bright and spacious accommodation and good access to local amenities.

The property offers a generously sized reception room with open plan kitchen, double bedroom and contemporary shower room. Westbourne Court has also recently undertaken refurbishment with all new communal areas.

2-bedroom apartment for sale in Aberdeen Wharf, E1W

Asking price: £800,000

Extending to 970 sq ft, the apartment offers a dual aspect reception with views over Wapping’s Rose Garden and a side aspects of the Thames from one of the bedrooms and the reception room.

The apartment boasts warehouse features throughout, including exposed bricks / timbers and warehouse style loading bay doors off the reception.

The master bedroom includes fitted wardrobes and a modern en-suite bathroom. The second bedroom, overlooking a park, has side aspect views of the Thames. The welcoming hallway leads into a large kitchen / dining room as well as a second shower / bathroom and the beautiful reception room.

1-bedroom apartment in Oxbox, Canary Wharf, E14

Asking price: £449,000

This spacious 1-bedroom apartment is located on the 5th floor of the Gabriel Court building at Oxbow and benefits from having a private balcony.

All apartments are surrounded by vibrant, landscaped spaces and a collective mix of wellbeing amenities to suit every need.

At the centre of Oxbow, Aberfeldy Street is evolving - the scene will soon change with a host of new stores, cafés and restaurants, drawing people in not only from Oxbow, but from every corner of the capital.

Oxbow is part of a wider regeneration project and once complete will consist of 1,176 modern apartments moment from Canary Wharf.

1-bedroom flat in Pembridge Villas, Notting Hill, W11

Guide price: £650,000

The accommodation boasts a generous open plan reception/dining room which offers excellent entertaining space and high ceilings.

It also has a stylish designed fully integrated kitchen, large double bedroom to the rear with a beautifully finished en-suite bathroom and excellent storage space throughout. This apartment also benefits from access to the non-demised patio at the front of the property.

2-bedroom apartment, St John's Wood, NW8

Asking price: £825,000

Offered for sale and arranged over approximately 665sqft. is this beautifully presented apartment that has recently undergone complete renovation. Located on the third floor (with lift), the apartment gets a large amount of natural light throughout.

The reception/dining room has a large westerly facing window whilst the apartment benefits from a separate kitchen. There are two good sized bedrooms, both with built in storage and having access to the family shower room.

The building benefits from live in concierge, lift access as well as parking for residents only on a first come first serve basis.