London rental home numbers drop by a ‘staggering’ 38% in one year

London rental home numbers drop by a ‘staggering’ 38% in one year

9:28 AM, 22nd August 2022, About 2 months ago 9

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New data shows that the number of homes to rent in London fell between July last year and July 2022 by 38% – and the capital has now entered a ‘landlord-driven market’.

But the number of tenant enquiries over the same period rocketed by 60%.

The figures have been published by real estate firm Chestertons who say the imbalance between the number of tenants and available rental properties across London continues to cause concerns.

They say the 38% fall in the number of homes to rent is ‘staggering’.

Market imbalances of this scale are causing tougher competition

Now Chestertons is warning that market imbalances of this scale are causing tougher competition and further rent increases – with tenants already struggling with the cost-of-living crisis.

Their research also shows that there were 45% fewer landlords willing to lower their asking rents, compared to the same month last year.

Richard Davies, the managing director of Chestertons, said: “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.”

‘We are now operating in a landlord-driven market’

He added: “Given the drop in rents that landlords faced during the pandemic; some by as much as 30%; 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 (ONS), released last week.

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% 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.



Comments

Morag

10:49 AM, 22nd August 2022, About 2 months ago

I wonder when the two governments will finally realise what they have done.

https://www.thenational.scot/news/20679470.scotlands-private-rented-sector-crisis/

Karen

11:52 AM, 22nd August 2022, About 2 months ago

Reply to the comment left by Morag at 22/08/2022 - 10:49
Indeed. Looks like they are all asleep at the wheel.

AT

12:08 PM, 22nd August 2022, About 2 months ago

Rising interest rates, section 24 = more landlords leaving the rental sector.
Maybe the voters can vote for more rental properties and the government will relax the rules and not punish the rental sector with section 24... Unbelievable what they have done to kill the sector.

Sanjeev Markanday

12:18 PM, 22nd August 2022, About 2 months ago

Had enough. Even though I've had no issues with tenants, the onerous requirements and tax disincentives mean I've put properties up for sale,

Barbara Gwyer

13:01 PM, 22nd August 2022, About 2 months ago

For a few years now I have kept thinking the government surely can't think of any more legislation to penalise landlords yet they have managed it time and again. The next thing is bringing property to EPC standard or better isn't it. Some of my tenants have been in my properties for years and it breaks my heart that the ones in eg ex-social housing are going to be made homeless because it won't actually be feasible to achieve this for one flat alone in the centre of a block. I've sold half of my portfolio and the rest will be following as and when they come empty.

Dylan Morris

15:25 PM, 22nd August 2022, About 2 months ago

Reply to the comment left by Barbara Gwyer at 22/08/2022 - 13:01
And of course the EPC rating requirements won’t apply to the council home sector.

Barbara Gwyer

15:40 PM, 22nd August 2022, About 2 months ago

Exactly Dylan. Hence my problem

AT

15:58 PM, 22nd August 2022, About 2 months ago

Reply to the comment left by Barbara Gwyer at 22/08/2022 - 13:01
Barbara, I agree. There is no end to the onslaught for the so called evil landlords, UK has almost made it a sin to be a landlord. Our neighbours thought bad of us at one time but they forget we are housing many people who can not afford to buy, we are not talking about housing high earners just normal people. We haven't raised rents for years. Raising one or two now after 3 & 4 years.

In due course the older experienced landlords, say around 55 to 60 (not old) will get out of rentals, sooner than they wanted to, I am one of them. The younger can not afford to become landlords or want to now and the much older may pass their estates to their children, who may just sell up for an easier life.

I can not see this ending well for the renters and landlords will continue to exit with a bad taste.

The other way to look at this is from a new landlord, who will see legislation as it is without the past, I get that but its still not rosy for a newcomer.

But let's hope the new landlords with one or two properties have sufficient primary income to ensure mortgages, repairs and service charges are covered and loss of rent if there are issues with tenants.

Tim Rogers

21:37 PM, 22nd August 2022, About 2 months ago

Not knowing the London market, I'd be interested in whether the shortage is solely due to a reduction in rental stock over all or if the take up of rental properties has increased, thereby limiting the number currently available.

I suspect the former, but I wondered if there are any figures to back this up.

It might open the door for raising the matter with whoever is the new responsible minister and/or the mayor.

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