Rental market rebounds as pandemic deals expire

Rental market rebounds as pandemic deals expire

0:02 AM, 19th January 2024, About 5 months ago

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The number of properties available for rent has increased by 45% compared to last year, reaching the highest level since Covid, Chestertons reports.

The London-based estate agency attributes this surge to the expiry of many three-year contracts that tenants signed at below-average rates during the pandemic.

Chestertons also predicts that rents will rise by 5% in 2024 and 3-3.5% in 2025 across the UK and London, as the supply of rental homes catches up with demand.

‘Allowed tenants to secure a property’

Adam Jennings, the head of lettings at Chestertons, said: “Rents fell significantly at the peak of the pandemic and allowed tenants to secure a property that they might not have afforded before.

“To provide both, the tenant and landlord, more security in those uncertain times, many of the contracts agreed were for up to three years.

“These deals are now ending and many of the properties are returning to the market, offering tenants looking to move more options.”

12% rise in rental enquiries

Tenants seem to be taking advantage of these market conditions as Chestertons’ data revealed a 12% rise in rental enquiries and 54% more viewings arranged compared to December 2022.

With a bigger pool of available properties, landlords are being more flexible with their rents.

And in December, Chestertons says it saw 46% more of its landlords accepting a rent reduction compared to December 2022.

Mr Jennings advises: “Although tenants have more choice now, we recommend them to begin their search as soon as possible as London’s rental market is still very competitive.”

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