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TODAY'S OTHER NEWS

London rents drop by up to 15% amid the coronavirus crisis

Private landlords in London have been forced to drop rents by up to 15% following a significant increase in the number of empty properties on the market, according to Chestertons. 

With fewer corporate relocations and overseas students looking for accommodation, as well as a growing number of people concerned about job security, the letting agency reports that there has been a sharp drop in tenant demand. 

Chestertons says that the number of rental properties available in the capital is up by about 63% year-on-year, meaning that tenants have a much wider choice than before.

Richard Davies, Chestertons’ head of lettings, said: “We are now coming into the busiest time of year for rentals in London. 

"However, we have seen a rapid switch from a landlords’ market to a tenants’ market and landlords are now having to discount their properties by 10% to 15% in order to secure a tenant, or risk facing a long void period with no rental income.”

Chestertons’ own figures show that although there are a lot of tenants looking at properties – with 52% more enquiries and 25% viewings, many of which are still virtual, than the same time last year.

The number of tenancies being agreed is down 27% as tenants have become increasingly selective and only willing to take a property if they believe it represents good value.

Davies added: “The market is still incredibly busy and there are a lot of excellent tenants out there prepared to move quickly, so this is far from an Armageddon situation, but the way things are currently playing out mean that tenants are generally able to secure a better deal than they currently have and landlords are needing to drop their rents accordingly to ensure their property remains competitively priced.”

Poll: Do you agree that it is currently a tenants’ market?

PLACE YOUR VOTE BELOW

  • Mark Wilson

    My firm are anticipating rents to drop by 30% (central London) and transactions down by 50%. Fee income on new business down by 60% -70%.
    Does that sound about right?

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    Being so cheerful keeps you going!

     
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    I fully expect rents will drop in London, but for the rest of us I doubt there will be little change, I accepted an offer of £525 on a property that was advertised at £550 yesterday, which had previously been let at £525 so I'm happy with that, maybe we will need to add a bit on to take a bit off.

  • Suzy OShea

    Mark Wilson,

    Always the Doomster! Still were you not advocating to let tenants live in our properties for free a short while ago?

    Well if the rents fall so far they'll hardly be worth collecting.

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    No surprise how much they fall with Gov' telling them not to pay , so many encumbrances, additional costs, A load of paper work placed upon us, penalties, Licensing, taxes + 3% extra SD, s24, no Deposits for me since Shelter took away in 2007, De-regulation Act, Rent Holiday, s21 rocking. Building Thousands of Flats clearly not required, not suitable & with Gov' blessing, perhaps a good time to invest in a wrecking ball.

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    Gov' haven't a clue, fish out of water, all public school boys with useless uni degrees, no business sense, no common sense, no hope , some one should come up with a ''real world uni course'' but who would teach it ? more pricks with useless uni degrees.

     
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    30% down in Central London oh well never mind. I can confirm outer London properties same rent as before and northern areas up! Up!
    Extra £55 monthly rent on last weeks sign up and extra £25 monthly on weeks before. Multiple viewers multiple applicants.
    One applicant (who didn’t) get the property offered 12 months up front! He was furious when he was told the house went elsewhere.
    Good days ahead for landlords prepared for head down positive approach with good properties with high service

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