A major lettings agency in London says the imbalance between the number of tenants and available rental properties continues to cause concern.
Chestertons - comparing July 2022 with July 2021 - says there has been “a staggering” 38 per cent drop in the number of properties on the market to rent, whilst the number of tenant enquiries increased by 60 per cent.
With tenants already facing challenging conditions due to the cost of living crisis, Chestertons warns that market imbalances of this scale are causing tougher competition and further rent increases. Illustrating this, the agency‘s data shows that there were 45 per cent fewer landlords willing to lower their asking rents compared to the same month last year.
The agency’s managing director, Richard Davies, says: “We continue to see tenants who are really struggling to secure a property in London due to the sheer volume of tenants that are fighting over each new rental property that comes onto the market.
“To try and avoid further disappointment, many tenants are offering to pay landlords more rent than they are asking for, but even this isn’t guaranteed to work. Given the drop in rents that landlords faced during the pandemic; some by as much as 30 per cent; we are now operating in a landlord driven market.”
Confirming the upwards trend for London rents are the latest statistics from the Office of National Statistics, released this month.
The figures reveal that London rents rose the most in five years as demand for rentals continued to exceed the supply of properties.
Private rental prices in London grew 2.1 per cent in the year to July. Although this is the lowest growth rate in England, the capital is quickly catching up with an acceleration in rents charged since the start of the year, the ONS says.
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Think this is the case nation wide isn't it ?
Pretty much, so few 2 and 3 bedroom houses for rent in West Midlands. As soon as one goes onto Rightmove it is snapped up. I have a waiting list made up of friends and family of my current tenants who text me almost every month asking if any of my houses have become empty yet.
Yes same here in Norfolk
And here in Manchester…. And still the government will continue with their attacks on the PRS 🤔🤔
I'd suggest Government thinking (The Tories) was that attacking landlords wouldn't do them any harm and would likely buy them tenant's votes. Don't you love it when a plan backfires?
John,
The Tories are in government? I thought it was the Communists Party?
LOL. Nice one Nick
It is only going to get much worse regarding a reduction in supply if that Renters Reform white paper comes into force. There will be a handful of properties to let in London once the right to enter into a fixed term contract with tenants has gone. And a huge number of Section 21 notices will be served once the date when they can no longer be served is known.
Yup. Well done Shelter! Well done GR!
The problem is no one in Govt is listening! Whilst higher rents seems good for LLs in the short term, I am worrying about tenants defaulting because of energy costs & evictions being stalled, breathing space orders, tenants unable to move somewhere cheaper etc. The PRS is not working properly when demand exceeds supply by so much and we are only at the beginning of this crisis. The PRS is going to go into freefall and it will be a difficult place for tenants and LLs :(
WHY IS NO ONE LISTENING TO LANDLORDS!
Quite right Tricia on all points.
The big question is whether people who don't listen to all sides of an issue should be in government at all.
The sxxt is beginning to hit the fan but it will take a couple of years or more before the government admit to it, whence property owners will get fed sweeteners to persuade them to let again.
Any sweetner from this government would be in the form of a poisoned Chalice.
4 properties to let in my 2 local towns (including surrounding villages), with combined chimney pots of about 20,000. As an agent I had a few offices in London, one in Wimbledon for example, typically there were about 1500 properties to let on average at any one time, sometimes as many as 1700, and we always had at least 75 available on our own. 256 total today for about 40 agents. Never seen the cupboard so bare, and with a tough sales market on the horizon, many of those agents are going to have to start trimming their sails.
Good news , my daft tenants are threatening to leave in a few months , pair of airheads
Good riddance now I can put the rent up 😆 hopefully get more mature tenants too without the snowflake’attitude’
The government has made it a sellers market whilst pretending to support tenants. Happy days.
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