Demand For London Letting Outstrips Supply

At David Harris & Co, we take great pride in helping London landlords connect with tenants, and provide the best standard of service. There are many factors involved with this, and we are extremely proud to say we work hard to ensure you make informed decisions in the London lettings market.

There is significant demand for London rental property right now. This is something we have seen in the local area, and it is supported by research.

People are looking for rental property in the capital

The most recent market analysis from London Central Portfolio (LCP) examines the second quarter of 2021. The overall findings suggest demand has far outstripped the supply of rental property.

Key findings from the study include:

· Compared to June 2020, there are 35% fewer flats available

· The drop in available flats has reduced the time taken to let property

· The drop in available flats has reduced the rental discounts requested for re-lets

· There was significant growth in interest from renters

· In June 2021, the average rental property received twice the number of online enquiries compared to June 2020

· 40% of applicants were happy to move to any neighbourhood in Q2, compared to just 6% in Q1

· The average time taken to let vacant property in Q2 of 2021 was 50.4 days

· This was 20.8% faster than Q1 of 2021

· This was 31.9% faster than Q4 of 2020, which was 74 days

· Agreed rents on re-lets in Q2 of 2021 improved on the opening quarter with the average discount moving to 9.2% from 13.1%

· In June 2021, there were average discounts of 6.55%, which were the lowest since the start of the pandemic

What do the experts say about the London rental market?

Andrew Weir, CEO of London Central Portfolio, comments: "The prime London rental market has benefitted from a broadly improving environment as witnessed throughout Q2 2021. Whilst total ‘normality’ has not yet been achieved, there is a clear rebalancing process underway that can be seen from the data on our managed portfolio. Q2 continued to see shorter void periods with increased tenant demand. We are already beginning to see an increase in enquiries for tenancies with August start dates, as companies plan for the return to the office in one form or another as well as students looking to continue their studies. We anticipate these factors will contribute to a continuing downward trend in vacant periods between tenancies during Q3.”

Andrew Weir continued by saying; “This increased activity has inevitably affected the agreed rent levels for renewals which saw no discounts in June. We experienced an average discount of 9.2% for re-lets in Q2 improved from 13.1% in Q1. With the quantity of stock available for let reducing, tenants now prioritise competitive pricing over location with an open-minded approach to specific locations within prime London.”

Andrew Weir concluded by saying; “The lettings market is often a leading indicator of the direction of travel for the London property market and where capital will undoubtedly follow. London remains an extremely attractive destination for many individuals for residency, education, business and leisure. Our Q2 lettings results are particularly encouraging given that international travel restrictions were still substantially in place.”

If you have any questions about the housing market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.