London rental stock has dropped 58% year-on-year, claims leading agency

Chestertons says extraordinary reduction in stock is down to landlords selling up and switching to Airbnb short-lets.

airbnb rental market

Landlords selling their rental market properties during the pandemic or swapping to short-let contracts caused the number available in the capital to drop by 58% compared to last year, says Chestertons.

The London agent’s branches also saw a 55% rise in the number of tenants looking for a new home in August compared to August 2020, creating an increasing imbalance between supply and demand.

richard davies airbnbHead of lettings Richard Davies (pictured) says the race to find a rental property in the capital is set to become more competitive, putting landlords firmly in charge of price negotiations; there’s been a 78% fall in the number of its landlords willing to reduce their rent compared to August last year.

He adds: “With demand outstripping supply, rents are now starting to increase and – if limited availability of rental properties continues – it won’t be long before rents return to 2019 levels. The clear shortage in available properties has resulted in greater urgency from tenants who are having to compromise and be more decisive in order to secure a property within their budget.”

Rental market

Boroughs including Kensington & Chelsea, Fulham & Hammersmith, Westminster, Camden, Richmond Upon Thames and Wandsworth saw the biggest jump in rental prices, reports Chestertons.

“These areas are particularly popular with corporate tenants and international students who are now returning to London,” says Davies. “At the same time, our offices register frequent enquiries from people that left the capital during the pandemic but are now longing to be closer to their offices and the entertainment that London offers.”

Read more: Former Airbnb landlords flood London market with empty properties.

One Comment

  1. In my opinion there are three factors behind this supply crisis:

    – more demand: as said many tenants moved back to London in the summer last year together with new students

    -high taxation: many landlords sold their properties as a response to the increase in taxation for buy to let owners and the introductions of new license systems in the London boroughs

    -tenants not moving: those tenants who secured a home during the pandemic for a discounted price are not wanting to leave their current dwelling.

    director at
    Alex&Matteo Estate Agents

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