11:22 AM, 4th January 2023, About 11 months ago
Tenant demand for homes to rent in London is ‘unseasonably high’ but rent rises are beginning to slow down, one agent reveals.
According to Chestertons, they saw the first signs of the capital’s rental market cooling down in October – and their November data proves this trend.
They say that the number of landlords reducing rent in November was double that of November 2021 – and 50% higher than in October.
And 10% more new rental homes came onto the market in November with the overall number being 50% higher than in November 2021.
Chestertons says that with more properties coming onto the market, more tenants are also signing up to find a new home.
Their figures show that enquiries from new tenants were up 10% compared to November 2021, and the number of completed viewing appointments grew by 12%.
Also, 8% more tenants made offers on rental properties compared with the year before.
The agent also highlights that above average tenancy extension rates have been a feature of the market since Covid.
However, this has compounded the structural shortage of private rental housing in London by taking more rental homes out of the market for a longer period.
Chestertons saw the number of tenants renewing their existing leases in November increase by 30% – that’s on top of an 18% increase in October.
This is down to a ‘highly competitive market’, along with reduced choice and increasing rents.
However, as these ‘long Covid tenancies’ come around for renewal this year and rental price growth cools, Chestertons expects more of these homes to be released back into the market which will help boost supply.
Richard Davies, the COO of Chestertons, said: “Covid had a major impact on the natural cycle and operation of London’s rental market with lockdowns restricting tenants’ movements and their ability to move, artificially cutting supply and extending the average rental property’s time on the market which impacted on pricing.
“The aftershocks of this unusual period are finally coming to an end, and we believe that London’s rental market is now showing signs of stabilising, with more rental properties coming onto the market and an increasing number of landlords being realistic on the rent they are prepared to accept to minimise any void period.”