London’s rental market is showing signs of recovery after a pandemic-induced slump. According to experts, the supply of new rental listings grew steadily in September, marking a notable 10% increase year-on-year. This growth in available rental properties is a welcome change for both landlords and tenants in the capital.
A Positive Shift in Supply and Demand
The increasing supply of rental properties is accompanied by a corresponding rise in rents. They reported that rents also grew by 10% over the same period. Despite the increase in rental listings, demand for rental properties remains high, as an average of 19 prospective renters expressed interest in each new property listing. While this figure is down by 19% year-on-year and 17% month-on-month, it's still a robust demand, indicating London's status as a sought-after city for renters.
The data also reveals that rents have remained at record highs, approaching £600 per week on average. This high rental cost, despite the increasing supply of properties, highlights the persistent demand for rental accommodation within the city.
Experts’ Insight on London's Rental Market
Experts commented on the current rental market dynamics stating that the supply of rental properties in London has increased 10% compared to this time last year, which is very welcome news. However, we are still behind the levels we've seen in 2019, 2021, and of course, the post-lockdown market of 2020, so we're not back to a normal seasonal market just yet. Prices continue to be at record levels, and I don't expect that to change significantly in the short term, given we are currently still registering 19 tenants for every property we have on the market.
This evolving situation in London's rental market reflects a shift from the low levels of rental stock observed during the summer to a more normal state with an increase in available properties in recent months. This shift has helped accommodate the strong demand from tenants in the city.
Although renters had higher budgets compared to previous years, there was a seasonal 3% drop from August to September in their rental budgets. Nonetheless, this adjustment doesn't seem to have significantly impacted the overall rental market in London.
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Prospects for London's Rental Market in the Near Future
As we approach the end of summer, there's been a noticeable decrease in both supply and demand in the rental market. Westminster emerges as the area with the newest rental listings in London, accounting for 11% of the total year to date.
In conclusion, London’s rental market appears to be on the path to recovery, marked by an increase in the supply of rental properties, steady demand, and record-high rents. However, while the situation is improving, it's still not quite at pre-pandemic levels, indicating that the London rental market is adapting to new realities and demands.
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