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Robert Irving Burns

Rental Demand in London Increases As Lockdown Ends

July 25, 2021    |   Robert Irving Burns

Demand for renting properties in London is rising as the city slowly emerges from lockdown restrictions. Conditions are now perfect for a rental revival in the nation’s capital with rental property viewings soaring in central London. With businesses returning to city centre offices and rental rates being more affordable than ever, it’s easy to see why this demand has increased.

So what is happening in London to revive the demand for rental accommodation? What do the current trends mean for landlords and tenants? Read on to find out.

The End of Lockdown Sparks a Rental Demand in London

The reopening of the economy in June has had a positive effect on the rental market in most major cities in the UK. During lockdown, the rental market in London was hit hard. However, things are changing now that renters are returning.

According to some figures, viewings for rental properties in central London skyrocketed by 46 percent in April 2021. Additionally, in June, the number of people registering to rent in London rose by 17 percent compared to last year. This demand has been driven by domestic tenants, not ones from overseas, indicating that more renters are moving back into the capital.

The high rental demand in London has also affected the availability of properties. With tenants flooding back to the city, demand is out beating supply. So, while rental rates in London hit all-time lows during the pandemic, the low supply and high demand is starting to push rents up. The result is a rush of tenants wanting to sign rental leases for low rates whilst they can.

The influx of international renters is another trend fuelling the demand for rental properties. As restrictions on international travel slowly get lifted, more professionals from overseas are expected to relocate to London. This means that rental demand for newly-built flats that are professionally managed will be in demand.

What the Increase in Rental Demand in London Means for You

If you are a landlord in London, now is an ideal time to let your property and rebuild your investment. The high demand and low supply mean that it is easier to negotiate rates with tenants. This is welcome news after the turmoil of the pandemic when most landlords had to work out payment plans with their tenants.

Record low rental rates and dwindling demand mean that there has never been a better time to rent a flat or house in London. Trends show that rental rates will continue to rise and eventually reach pre-pandemic levels. Due to the uncertainty of future conditions in the rental market, many landlords are willing to agree to leases for longer than 12 months.

Will the Rental Market Fully Recover in 2021?

The end of lockdown has sparked a high demand for rental properties in London. A full recovery may still take some time. And it remains to be seen what will happen if there is another wave of infections. However, the middle of 2021 shows positive signs of a upturn in the rental market.

If you would like further information on the points raised above or would like more details on our available rental properties in London, contact a member of our residential lettings team using the contact details below. You can also browse our available properties online.

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