Landlords in central London have been forced to reduce rents by an average of 10%, according to Chestertons.
The letting agency says a combination of factors have led to the drop in rental values, including fewer overseas students looking for accommodation, a sharp decline in the volume number of corporate relocations, and tenants concerned about job security and moving back home with family, which has reduced demand.
Richard Davies, Chestertons’ head of lettings, commented: “[Many landlords] are willing to reduce their rents in order to secure good tenants with which they can ride-out the rest of the pandemic. As a result, we are experiencing a very busy start to the summer market, although unusually for this time of year, rents are down by an average of 10% and continuing to fall slightly.”
Chestertons’ figures show the number of new tenants registering to look for a new property was up 43% compared to May, while property viewings, offers and agreed tenancies were all up 36%, 52% and 59% respectively.
However, the number of available rental properties is up by 68%, which largely explains why many landlords are continuing to drop their asking prices in order to attract tenants and avoid the possibility of having an empty property on their hands if lockdown restrictions are tightened again.
Davies commented: “We are all hoping that there is no ‘second wave’ or another lockdown situation, but many tenants are taking the ‘better safe than sorry’ approach and securing a new property as soon as they can.
“Many landlords are taking the same approach and are willing to reduce their rents in order to secure good tenants with which they can ride-out the rest of the pandemic.”