Survey is In: UK Rents Rising but London Rents Fall
The number of available rental properties in London has significantly increased as one survey has shown that the average cost of renting has decreased. These results mean that there is a low demand for London properties.
Compared to data from 2019, room rents and whole property rents have fallen. The data was supplied by SpareRoom and Rightmove. In London, asking rents have dropped compared to the same quarter last year.
Property website Rightmove believes the rental fee decrease can be attributed to an increase in 'rental stock'. With the extended lockdown impacting tourism and short lets market, there is now a surge of vacant Airbnb-style flats that have turned into long-term rentals.
With the stamp duty holiday implemented throughout the UK, landlords are planning to expand their property portfolio. Miles Shipside of Rightmove believes that this could further cause an influx of properties.
"Many renters may feel they've been left out of the Chancellor's recovery packages, but one glimmer of hope is that the temporary stamp duty savings may entice more investors to expand their portfolio. If this does happen we could see more choice for tenants and in turn prices may stabilise for a while, but it will take some time."
Demand outside of London Rises
As has been noted, a growing trend among buyers and renters are a search for less congested, more green properties. Renters and homeowners are now looking for properties with access to parks, balconies and private gardens. This trend is causing an increase in demand for properties outside of the capital.
Mr Shipside comments: "There are early signs that some existing London renters are looking to move further afield, adding to the large increase in the number of properties up for rent on Rightmove in the capital, so prospective tenants there could find there's some room to negotiate especially if they are happy to sign a longer-term contract than usual,"
Rental asks outside of the capital saw an increase of 3.4 per cent.
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