In the rental market, good news for landlords is often bad news for tenants, and vice versa. You would like to think that tenants and landlords can work together, and this is something we believe in at Hunters.
There is no need for landlords and tenants to be rivals. Often, there are outcomes or scenarios which are helpful to both, but when it comes to financial matters, it is easy to see why there is often a difference of opinion.
Tenants can find great options in London right now
This is why tenants are likelier to be happier than landlords about 65% of London neighbourhoods experiencing a setback in rental growth, a setback said to equal at least five years.
A recent study looked at more than 900,000 rental properties, and there has been a decline in rents in Inner London. Asking rents have fallen by 6.5% compared to the opening quarter of 2016. However, in Outer London, it is a different story. Rents have increased by 2%.
The largest fall in London comes in Finsbury. Asking rents have fallen by 24% compared to five years ago. There has also been a rise of 76% for rental properties in Finsbury, compared to this time a year ago.
This has been a challenging year for landlords
The area which has experienced the largest increase in asking rents in London is Hammersmith, with a rise of 12%. However, much of this growth is attributed to the time between 2016 and 2020. In the past year, rents have fallen by 19%.
The highlights, according to Rightmove, are as follows:
- Asking rents in almost two thirds (65%) of areas in London are lower than they were five years ago, compared to just 4% of areas with lower rents across the rest of Great Britain
- London is the only region where asking rents are lower than five years ago, down by 2.3%, while the East Midlands has seen the biggest rise, up by 19.3%
- Nationally asking rents outside London have hit another record high, at £982 per calendar month, up 4.2% on Q1 last year and the highest annual rate since 2015
- Available rental stock in London is up by 19% compared to this time in 2019, while outside the capital the fast-paced market has led to available rental stock being down by 54%
- The time it is taking to let a property is at its fastest pace ever in seven regions, with the South West being quickest at an average of just 14 days to agree a tenancy
Rightmove’s Director of Property Data Tim Bannister said: “Our data shows a stark contrast between the rental market in central areas of London and the market across the rest of Great Britain. Agents are telling me that they don’t have enough rental stock to meet the demand from tenants in many areas, while in London there will be some tenants who have a lot more stock to choose from. Landlords who five years ago took a longer term view obviously couldn’t foresee the effect that covid would have on rents, and right now they’ll be doing all they can to prevent voids and hope the drop in rents is fleeting. The frenzied buying and selling market is likely to be exacerbating the problem as well, as some sellers are moving into rental accommodation until they find the home they want to buy, adding further demand to already diminishing rental stock levels.”
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.