London’s rental market hits record high as landlords reduce rents

London’s rental market reached its peak last month with a growing trend of landlords lowering their rents, and Chestertons helped a record number of tenants into their homes.

The lettings agency says that the boost in activity was driven by increasing demand for short-term rentals from business and leisure clients, as well as corporate relocations and a strong international student market.

According to the firm’s latest review of the capital’s rental sector, the agency moved 57% more tenants in September compared to August.

The report also reveals that rents have increased by 12% in the past year, reflecting the continued competitiveness of the market.

‘Rents have increased by 12%’

Richard Davies, the chief operating officer of Chestertons, said: “We moved a record number of tenants in September and the continued competitiveness of the market is shown by the fact that rents have increased by 12% in the past year.

“The number of tenants in the market has now started to decrease as we enter the last few months of the year, and we are already seeing some landlords reducing their asking rent to ensure that their property is not left empty for too long.”

He adds: “Tenants will be in a slightly better position to negotiate rents over the next few months but, with London’s rental market remaining competitive, we urge tenants to start their search as early as possible in order to get the best deal.”

Some landlords are reducing their asking rent

However, Chestertons’ data also confirms that the number of tenants in the capital’s rental market has started to fall and that some landlords are reducing their asking rent.

By the end of September, the firm says, 25% more landlords were open to negotiating rents than at the start of the month.

Chestertons says that the demand for short-term rentals increased by 22% in September, as more people travelled to London for work or leisure purposes.

The agency also saw a 7% increase in corporate relocations, as more companies resumed their operations in the capital.