Tenant demand in London reaches pre-pandemic levels
November 16, 2021
Demand for rental property in London has been increasing and has returned to its pre-pandemic levels.
Recently released figures show “phenomenal growth” in tenant demand compared to previous levels, with demand for rental property in the capital driving up rental prices.
Rising requirement for homes to rent in the UK capital has been pinned from the return of students from overseas, who are piling back into the London rental market.
Corresponding with rising tenant demand is rental prices, which, according to agents, have been pushed to higher than pre-pandemic levels.
Some of the areas that have seen the highest rent increases in London are Hyde Park, St John’s Wood and Fulham.
When comparing figures from July 2021 with July 2020, there was a significant drop in the number of tenants withdrawing from planned rental agreements. The number of tenants moving into a new home in London for the same period was 16% higher.
Other studies echo the same picture that the London rental market is enjoying an upward swing. In January 2020, the average cost of renting a home in London was £1,627 per month. By the end of 2020, the cost had fell to an average £1,556 per month. In July 2021, the cost of London rental increased by 2.4% on the previous month and was 5.7% higher than in December 2020.
It’s no secret that the pandemic and its immense disruption took its toll on the housing market in London. Multiple studies suggest that the market is over the worse, and things are, once again, on the up for housing in the capital.
With tenant demand rising in London, alongside increasing rental costs, now could be a good time to capitalise on the buoyant market by investing in property to let out in the capital.
Buying at auction can be a convenient and cost-effective way to purchase the rental home you are looking for. Check out the lots we have available in our next property auction in London.
Written by Andrew Binstock
November 16, 2021
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