Renters in London are facing a cutthroat market as competition for properties reaches boiling point.
According to lettings agency Chestertons, there’s been a massive surge in tenant activity this summer. The number of offers being made on rental properties has skyrocketed by 22% compared to June. And it’s not just offers – even enquiries about properties are up by 7%.
So why is everyone desperate to rent in London?
Well, Chestertons think it’s a perfect storm of factors. Remember all those students looking for flats? And the flood of workers returning to the city? They’re all back, and they’re desperate for a place to live.
Plus, let’s not forget the army of potential buyers stuck renting because they can’t get a mortgage thanks to those pesky interest rate hikes.
And if you think there are plenty of flats and houses to go around, think again. Rightmove says the number of available rentals is still lagging 20% below pre-pandemic levels – meaning there are simply not enough places to live!
Landlords Rubbing Their Hands With Glee
All this adds up to good news for anyone lucky enough to own a rental property in London. Chestertons says there’s been a 14% increase in landlords getting their properties ready to let. And with demand so high, you can bet your bottom dollar they’re hiking up the rents.
Rightmove’s data backs this up, showing that the average rent in London has just hit a record-breaking £2,661 – that’s a 4% jump compared to last year.
Adam Jennings, at Chestertons lettings, says:
“We’ve got all the usual suspects driving up demand – students, office workers, people renewing contracts. But on top of that, we’ve got all these potential buyers who are stuck renting because of the mortgage rate chaos. It’s no surprise that we’ve seen 29% more renters moving in compared to July last year.”
So, what does this mean for renters?
In a word, competition. Jennings warns that renters need to be super proactive and stay in close contact with their letting agent if they want to stand a chance of securing a property.
So, if you’re thinking of renting in London, be prepared for a tough fight. Get your game face on and get ready to move fast!