Rental property crisis in London ‘easing’ claims big agency

The agency's COO, Richard Davies, says they saw a 39% increase in rental properties in the Capital last month, coupled with a fall in new tenants.

Richard Davies, Chestertons

There may be some hope for the rental market in London after all, as new stats show the pressure on each letting may be easing off.

The latest data from Chestertons shows there were 39% more rental homes on the market in July compared to the same time last year.

And the number of new tenants entering the market decreased by 5%, suggesting that market conditions may be improving for tenants in the capital.

Stronger position

With more properties to choose from and slightly less competition, tenants now have a stronger position in price negotiations, Chestertons says.

A much higher proportion of landlords, 88%, than this time last year were willing to reduce the asking rent to secure a tenant for their property.

Boosted

Richard Davies, COO of Chestertons (main picture), says: “Earlier in the year, London was suffering from a severe lack of rental properties.

“However, with the sales market proving challenging, many would-be sellers have decided to put their property up for rent rather than sell.

“This has temporarily boosted the number of rental properties, and prevented rents from continuing the double-digit increases that we have witnessed since 2021.”

Areas of London that have been in particularly high demand with tenants in July include St John’s Wood, South Kensington, Islington, Canary Wharf, Hampstead, Clapham and Fulham.

Number cut

Meanwhile, landlords are now more than twice as likely to sell properties than make a purchase in the country as a whole, according to recent research from NRLA.

More than one in 10 (12%) of landlords in England and Wales sold properties in Q2 this year while only 5 per cent purchased properties during this same period, the findings revealed.

Researchers also found over a third (37%) of landlords plan to cut the number of properties they let over the coming year.


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