After two years in the doldrums and high levels of over supply, prime central London is at last a landlord’s rental market according to a leading agency.
“With demand outstripping supply, landlords are currently in a strong position and those who have been considered selling their property may be persuaded to keep it as a rental investment given that rental yields are now increasing” explains Richard Davies, head of lettings at Chestertons.
“This continued surge in demand, especially in Prime Central London, is heavily impacting the supply of available properties to rent in the capital.
“As a result, rents have risen sharply and tenants now have a much more limited choice than they did last year. On average they are only able to view one or two properties that meet their criteria, which greatly differs from a year ago when they were able to view at least five.”
Meanwhile, Zoopla says the London rental growth is expected to last into 2022 as well.
Rents will pick up by 3.5 per cent on average in the capital, ultimately exceeding pre-pandemic levels.
Gráinne Gilmore, Head of Research, Zoopla, comments: “The swing back of demand into city centres, including London, has underpinned another rise in rents in Q3, especially as the supply of rental property remains tight.
“Households looking for the flexibility of rental accomodation, especially students and city workers, are back in the market after consecutive lockdowns affected demand levels in major cities.
“Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location.”
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