To coincide with the release of our February Rental Index, we carried out a survey with some of our London Letting Agents to gain their views on the current London rental market.
The data from our latest Rental Index showed that there was a dip in the annual variance of average rents in London:
- In February average rents on London were 5% higher than the previous year (£1,390pcm compared to £1,322pcm)
- This growth rate is slower than any seen in the last 12 months
Table 1: Annual variance in average rents for Greater London
We surveyed some of the Letting Agents we work with in London to get their view on London’s rental market.
Availability of properties for tenants in the capital
Of the 55 Letting Agents we surveyed that work in London:
- 80% felt that in the last three months, there were more tenants than properties and that this was the statement that was most applicable to supply and demand in their area
- 10.9% felt that there were more properties than tenants
- 9.1% thought that there was a balance between the level of tenants and properties available
Demand for property in London
When asked specifically about placing demand for rental properties on a scale of 1-10 these were the results...
Graph 1: Survey responses to the question "How high is demand for rented properties in the areas you cover on a scale of 1 to 10 (10 being highest)
The affordability of rental properties in London for new tenants
When turning the survey questions towards affordability, 56.4% of the Letting Agents we surveyed felt that tenants were struggling to move into a new rented home in the capital, while 38.2% felt that tenants were not struggling to afford to move into a new home, and a further 5.5% were unsure.
Of the Letting Agents who felt that tenants were struggling to move into a new rented home, we asked which factors they felt were most used to afford rental prices:
The latest data shows that rents are still increasing but at a slower pace in February, but for many letting agents the view is that demand is still high.
It will be interesting to see if average rental values in the capital continue to increase in March against last year... look out for the latest HomeLet Rental Index figures released mid April.
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