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Lettings Market Christmas Update 2021
24 November 2021
No lockdowns; Fewer restrictions; A busier market. These have been the three most discussed phrases within the lettings industry over the last 3 months.
Covid has, without any surprise, been a total game changer for the lettings market. The beginning of September has seen London now fully re-open, students back and with young professionals flooding the City once again, there has been an unexpected surge in demand for rental properties.
Previously, the option for employees to work from home meant commuting times could be stretched even further, however, employers are now calling time on this with employees 'encouraged' to spend more and more time in the office. This has resulted in many applicants either looking for a new property within Central London or just a pied-a-terre for 2-3 nights a week.
The lettings market has always attracted a particular demographic of Tenant, many who can of course afford to buy a property in central London, however, chose not to and instead enjoy a more transient lifestyle. If a property doesn't fit their needs from one year to the next, they can source another property. These Tenants however have decided to remain in their properties realising that, with rising rents and limited availability, they are not going to be able to find another property that suits their needs. The cost of paying an increase in rent asked by Landlords is still the cheaper option.
'Those who are entering the market are competing for stock, with the number of properties on the market to let in October this year down 72% on October 2020 and 52% lower than October 2019.'*
*(Lonres – London Prime Market Update – November 2021)
With demand outstripping supply and combined with the above, this has given rise to a severe shortage in stock across the board and, having experienced the significant downturn during the pandemic, this has resulted in Prime Central London cataloguing double digit growth levels with properties, especially the flat market, achieving up to 20-25% above their asking prices in the latter stages of 2021.
Looking ahead to the New Year and 2022 (and a crystal ball would be nice here!), it seems the market looks set to continue this trajectory with a lack of new instructions and ever-increasing demand driving asking prices into unchartered territory.
For any more information please do call us on 0207 589 3353 or email Clem Byron Evans
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