9:28 AM, 22nd August 2022, About 2 years ago 9
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’.
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.”
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.
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