Demand For London Rental Property Is Rising

28th September 2021 posted in Landlords Tenants

We know there is significant demand for rental property across the capital. This is the case for all property types, and at all property levels. Areas like West Hampstead might not be considered amongst your typical rental areas, but there are many reasons why households are choosing to rent these days.

If you are considering entering the local lettings market, or you are a landlord looking to let property in West Hampstead, we can help. We know the local area very well, and we stay in touch with what is happening across London. We will ensure you make informed decisions, so contact us today.

People and families want rental homes across London

Recent analysis indicates demand for rental property in the capital is on the rise:

  • There has been a 19% increase in the demand for rental property across London
  • The supply of rental property in London has fallen by 42% compared to July of 2020
  • There has been a drop of 63% in rent reductions compared to the July 2020 figures

Some parts of the capital are experiencing rent increases

Areas where there have been rent increases in London include:

  • Hyde Park, with a rise of 31%
  • St John’s Wood, which has experienced an increase of 27%
  • Fulham, where there has been an increase of 21%

There has been a drop in tenant withdrawals

  • 22% fewer tenants withdrew from their planned rental agreement when comparing July 2021 to July 2020
  • There was a rise of 16% for tenants moving into their new home for this time-period

Richard Davies, a prominent figure in the UK lettings sector, said; “Whilst there were deals to be had during the height of the pandemic and the first quarter of this year, tenants are now entering a much more competitive market. Since the easing of lockdown restrictions, we have been witnessing an evident surge in tenant enquiries across London. This has resulted in the number of available properties dropping to pre-pandemic levels, which will inevitably lead to an increase in rents. Tenants who are eager to still find more property for their money, may wish to consider the locations of Canary Wharf, Kentish Town, Bermondsey and Pimlico where rents are still comparably low.”

A similar study reinforces the mood that things are on the up in the London housing market:

  • In January of 2020, the average rent in the capital was £1,627 per month
  • By December of 2020, the average rent in London dropped to £1,556 per month
  • In July 2021, London rental values rose by 2.4% in the previous month and are 5.7% higher than the December 2020 figures
  • In the last quarter of 2019, there were 47,000 rental properties were available in London
  • In the third quarter of 2020, the supply of rental properties rose to more than 100,000
  • More recently, the supply of rental property in the capital has dropped to 64,206

Marc von Grundherr, commented: “It’s been a very tough year or so for the London rental market which has arguably been the worst hit in terms of dwindling demand and plummeting rental values. That said, we can finally say with confidence that we’ve seen the bottom and a number of factors are now spurring a market-wide recovery. We saw virtually no demand from overseas students last year which meant this stock further flooded a market that was already saturated due to a lack of interest from working professionals.”

Marc von Grundherr concluded by saying; “Although widespread lockdown restrictions remained in place during the start of this year, the reversal of the working from home trend and the return of foreign student demand, in particular, are currently driving a London rental resurgence during the second and third quarters.”

If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters West Hampstead today for all your housing and letting needs.