While it would be wrong to suggest things are returning to normal in London, there are signs of life again in the local area. At Holmes Estate Agents, we know there is significant demand for rental property in the capital.
This is something we have seen for ourselves, and it is something that is being reported across the capital.
New tenants are looking for rental property
One leading London based firm has said there has been a 73% increase in the number of new prospective tenants registering with them since the start of autumn 2019. When you consider the 2019 rental market was a strong year, this is a significant statement about how the market is performing now.
Gary Hall is the head of a lettings department for a leading organisation in the capital, and he has spoken about the market. Gary has said; “It’s turned into a landlord’s market in recent weeks and that has happened very quickly. Supply is tight in some areas and demand has gone through the roof.”
This demand is replicated across the country
According to the most recent Zoopla Rental Market Report:
The typical price of renting property in the UK, but excluding London, stands at £790
Over a year, this sees tenants pay an additional £456 in rent
Gráinne Gilmore is the head of research at Zoopla, and she said: “There has been a sharp rise in demand for rental properties in recent months, especially in central city markets, signalling the return of city life as offices and other leisure and cultural venues continue to open up more fully."”
Key figures about rent increases:
When you exclude the capital, rents in the UK have risen by 5% in the past 12 months
In January 2020, the increase was 2.2%
The South-West of England saw the largest increase, rising by 7.6%
The East Midlands experienced an increase of 6.8%
The North East of England saw a rise of 6.5%
In Wigan, the cost of renting rose by 10.5%
In Mansfield, there was a rise of 10%
Areas such as Norwich, Barnsley, Blackburn and Hastings all experienced an increase of at least 9.4%
Kate Eales, a known name in the property and rental sector said; “Rents are recording healthy growth in cities, but in the most desirable areas, there’s evidence of growth up to 25%. We recently let a home in the Cotswolds for £3,750 a month when it was previously let out at £2,200 and another was let for £5,500, up from £4,100.”
Kate Eales also said; “The recovery in the rental market has, in many ways, mirrored the boom in the sales market, with people looking for homes that accommodate a different set of needs shaped by their lockdown experience. Lack of stock and high demand are inevitably driving price growth. This stock depletion is a result in part of many accidental landlords having now sold their properties - benefiting from the soaring demand in the sales market.”
Gráinne Gilmore also said; “As ever, much will be dependent on the extent to which the current rules around Covid-19 continue as they are. But given no deviation from the current landscape, the demand for rental property, coupled with lower levels of supply, will continue to put upward pressure on rents. In London, this will translate into rental growth returning to positive territory late 2021 or early 2022.”
We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London rental market, please get in touch with Holmes Estate Agents today.