London Rents Hit Decade Low
After dropping 9.4% in the year to March, the average monthly rent in London now stands at £1,554 (US$2,186)—accounting for roughly 42% of a single earner’s average gross income, down from 49% at the same time last year, the online property portal said. The largest declines have been seen in some of the city’s most high-end neighborhoods. In the City of London, Kensington and Chelsea, and Westminster, rents have fallen to their lowest levels since Zoopla’s index began in March 2011. But with some boroughs now offering almost unheard of deals, potential tenants are taking note. Demand for London rentals is starting to creep back up after dropping off amid the escape-to-the-country effect that emerged during the coronavirus pandemic. Rental demand in inner London is up 6.5% in the nearly six weeks since April 5, when compared to the previous six-week time span. The gradual reopening of offices and surrounding amenities is also spurring renters to action. “A significant proportion of tenants in city centers are international students and corporate tenants. Due to Covid-related travel bans, this audience declined considerably, having a direct impact on the prime lettings markets,” Richard Davies, head of lettings at estate agency Chestertons, commented in response to the data. “The number of available properties to rent is 83% higher than this time last year, which led to many landlords of top-end properties dropping their rents,” he added. “The majority of tenants currently looking to move are already in rented accommodation but are eager to secure more property for their money.” London was the only U.K. region to log rent falls in the first quarter. Across the rest of the country, when excluding the capital, rents rose 3% in the 12 month to March, leaving the average monthly rent at £923, Zoopla said. Unlike London, where falling prices are underpinned by a lack of demand and an excess of stock, values in the rest of the U.K. are rising as people continue to look for homes outside the city.
Tags : INTERNATIONAL Landlords properties Rents London Decade Low U.K. region