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TODAY'S OTHER NEWS

London supply glut sees rents plummet 10% since Covid

A lettings market monitor says the Greater London rental sector has in recent months switched from one of scarcity of properties to over-abundance. 

The website Home issues a monthly housing market analysis for lettings and sales.

Its latest, just out, says rental supply in London has leapt 65 per cent compared to a year ago and most of this newly available letting stock is located in the most central boroughs. 

It says: “Supply shocks are being most keenly felt in Islington (where supply is up 205 per cent), Southwark and Tower Hamlets (both up 176 per cent) and asking rents have reacted quickly in these boroughs, falling by an annualised 21.2 per cent, 14.5 per cent and 15.2 per cent respectively. Such is the magnitude of this wave of new stock that landlords will struggle to find tenants even at these discounted rent levels, and we anticipate that rents will continue to slide in the near term.”

Home says that so far the average rental value for Greater London has lost around 10 per cent of its pre-COVID value overall, but highlights some locations where the drop has been significantly greater. 

“In the worst hit boroughs, landlords have slashed their rents by more than double that figure: the City of London (rents down 33 per cent), Kensington and Chelsea (down 24.7 per cent), Hammersmith and Fulham (down 22.7 per cent) and the City of Westminster (down 21.4 per cent)” says Home. 

However, at the other end of the spectrum, outer boroughs Bromley, Havering and Croydon are still enjoying moderate growth in rents - up 3.8, 5.1 and 6.8 per cent respectively in the past year - with supply remaining limited in these locations.

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    yeah but more people are showing interest 'cos we're getting more clicks... right ?.. so demand must be up... right ?.. so rent must be going up... right ?... and rent deferrals are only up from 2% to 3%... right ?... so now is the perfect time to invest in BTL...

    Paul Barrett

    If I could I'd sell up tomorrow.
    What does that tell you about LL sentiment!!
    I'm making great profits but I still want to sell up.
    That tells you something!
    I'm stuck making great profits cos I cant sell at full retail price whilst I know I am massiveky exposed to rent defaulting.

    Very very worrying which is why I want out!

     
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    Paul
    I had noticed that no one had responded to Seb's recent posts and from the tone of his post above, he is desperate for us to engage with him.

    Hopefully we won't return to the stage where we rise to his taunts and will in the main continue to ignore him.

     
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    Robert, too late, you have already returned to the stage where you rise to my taunts ?

    Why, because like the scorpion, it's just what you do ?

     
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    Certainly not in NW2, infact it’s the reverse and I’m still seeing same rents or a little more than when we were pre covid and there has been no affect to my properties without a garden.

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    Seb' you are having a laugh again at least you got a sense of humor. Suggesting its a good time to buy, at a time we want to run away with so much injustice. How many times have I said on this platform that there is a glut in L'don but now they are telling us this when its history not news. Why are thousands of more stupid high rise Flats being built clearly not required. Then the young buyers are coaxed into buying them with help to buy rubbish schemes / help to get into trouble schemes. It seems to take a disaster to stop regulators doing anything, dare I say it but if Grenfell (24 Story) hadn't happened thousands of more Blocks of Flats would have gone up since covered in Plastic cladding that now have a Brick facade but now they are building 42 story's high just a mile away how mad is that ? and its even a labor Council than gave permission for this ?.

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