Rental Market In London Stabilises
Last months of 2022 shows signs of a possible rental market slowdown in London as the number of landlords who reduced asking prices increased by 50% against October 2022.
Generally, 2022 was a heated year for the property market in the capital, including new builds in London and the rental sector. Interestingly, several subject-matter experts reported possible signs of the rental market cooldown as more landlords started to lower asking prices in November 2022.
Rental Property Market In London Late 2022
There are several other signs of a recovering rental market in the capital, including the rising number of new rental properties coming onto the market (10%) in November 2022. Interestingly, the overall number of available rental homes was 50% higher against the same time last year.
As a result of rising stock, the rental sector also saw more renters entering the market looking for new homes. Both the number of enquiries from new renters and completed viewing appointments increased by around 10% compared to November 2021, while 8% more tenants made offers on rental homes.
Another major trend is the rising number of tenants renewing their existing leases, mainly because of the competitive settings we saw in 2022. However, as prolonged covid tenancies come around for renewal this year and the rental market stabilises, experts anticipate seeing more rental properties coming back to the market, improving supply.
The effects of the COVID-19 pandemic on London's rental market are finally subsiding, and the market is beginning to stabilise. More rental properties are being listed, and landlords are being more reasonable in their rent expectations to avoid prolonged vacancy periods.
Rental Property Market In London 2023
Generally, some specialists anticipate the shortage of rental properties in London caused by the COVID-19 pandemic will continue, though at a slower rate.
More rental properties are now becoming available, and budget constraints for tenants are helping to balance the market and slow the rate of rental price growth. Rental prices are to increase by up to 5% in 2023 before levelling off in 2024.