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.