While most landlords won’t approve of London rents falling, in the current economic climate, there is an acceptance that things need to change. The average monthly rent in London is still above £2,000; so, some people will say rents have fallen enough, but anything which means people believe they can afford to rent property in the capital has to be seen as a positive thing.
At David Harris & Co, we aim to bring landlords and tenants together in the most effective manner. We know the local Finchley market well, and we stay in touch with what experts say. This ensures we provide you with the best standard of service at all times.
Andy Halstead, chief executive at HomeLet, noted December was home to the first national drop in average rents for the year. However, he also said; “Even in the face of a minor dip, rental prices remain historically high, including December 2022 being only the second month on record in which the average Greater London rental property has been priced higher than £2,000 per month. Our prediction for 2023 is that rental prices will likely continue to rise, despite spiralling costs for tenants in other areas of their lives. Tenants struggling to pay their rent is sadly likely to become a recurring theme across the country and, in turn, this could lead to some landlords vacating an already struggling market. This will likely result in a continued shortage of rental properties to meet demand.”
It is the belief of Matt Hutchinson, the director of SpareRoom, that rents in London have flattened out in the past two months, at least according to their data. Matt said; “There is an imbalance at the moment between an all-time high in demand and a 10-year low in supply. There is potential for prices to come down because they’ve shot up so much. But if they fall by a pound or two that won’t feel like a fall to people who’ve seen them go up 22 per cent in a year.”
When asked if this trend is likely to continue in 2023, Matt said; “There are two potential scenarios – one that the spike in demand has calmed, the other that it was a pause for Christmas and will bounce back. But there is only so far rents can go up and remain affordable. Rents in London were unaffordable for many tenants even before last year’s spike in demand. Unless demand falls and we see a significant increase in supply, it’s hard to see rents coming down much, even if they do fall.”
Marc von Grundherr is a noted name in the UK property market, and he believes that the economic downturn is battling against the recent bloom. Marc said; “There remains a strong appetite for good quality rental properties within the capital and this is being largely driven by overseas students, as well as Hong Kong British National Overseas visa holders, who are adopting a try-before-they-buy approach when settling in the UK. As a result, we’re yet to see any significant downward trends impacting London rental values at ground level and we expect this to remain the case over the course of the year.”
We have assisted many Finchley landlords connect with tenants, and we know where these groups are looking for rental property. You can take the stress out of connecting with your ideal tenant by turning to a local letting specialist in Finchley.
If you want to make an informed decision in and around Finchley’s letting market, we are here for you. If you have any questions about the local market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
.png)
