What Are the Latest News on Rental Prices in London

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Everyone should get a chance to experience what living in a big city is like – at least once in their life. That being said, one of the greatest cities in the world, London, catches the eye of many people looking to move there, be it short or long term. 

Before making any big decision though, it’s vital that you do your research first, and that’s what this article is all about. In case you are wondering about rental prices in London recently, keep on reading in order to find out.

London has been experiencing rental price cuts recently

In the past year, landlords all over London are feeling the full force of the Covid-19 pandemic, which has resulted in many of them being forced to cut the prices on rents. In fact, private rental properties’ prices in London have dropped for the second quarter in a row already. Some areas are experiencing declines in rent prices up to even 34% year on year.

Even though Covid-19 restrictions were eased over the summer due to the fact that cases were getting stable, the rental market still struggled to recover. And when it comes to actual numbers, the average monthly rent for a room in London has actually fallen to £725 between July and September, which is 7% less than what these prices were in the same period just last year.

Why are the prices falling?

One might ask themselves, why is this happening exactly? Especially considering that, excluding London, rent prices across the UK actually rose 2% on average. 

Well, firstly, the direct reason for the fall in rental prices has been heavily impacted by an over-supply of rental properties that are available. Currently, there are 34 percent more homes on the market than there were at the same time last year. Some rental offices some offices even report having up to 40 percent more properties to try and let.

Now, taking those numbers and assessing them while having the impact of the pandemic will easily explain why the prices have fallen. Increasing numbers of people have started moving out of big cities to suburbs and smaller times, especially due to the fact that they aren’t bound to their previous location because of the rise in homeworking. Another important factor is the fact that plenty of students are returning to their homes, again, since they are able to follow their courses online.

Bad news for landowners, but good news for tenants

It’s obvious why lower renting prices aren’t good news for landowners, but this situation did open up some new opportunities for those that are seeking to move to London. As experts on this topic over at royal-cleaning.co.uk/blog/London-Tube-Rent-Map explain, the fact that rents in central London fell 14.1%  annually to September means that people are able to find an apartment in central areas way easier than in the past few years. That being said, if you are looking to find a place to rent in London, now’s a good time to do so.

What does the future hold?

Most easily put – we just don’t know that yet. Things might change once international travel returns to normal and once the pandemic starts fading, but the probability is high that this isn’t going to happen overnight. 

In any case, the probability is high that we are going to see rental prices eventually returning to how they were before the lockdown, but exactly how and when that will happen pretty much remains to be seen. 

How should landlords assess this situation?

When it comes to giving anything relevant to landlords, things are, at its core, pretty simple. Due to the fact that there is no telling on how the situation is going to evolve, it would be best to accept the current situation, and do what you can in order to maintain your cash inflow. Basically, just try and be realistic with the prices of your properties and work on the presentation of your property to the best of your abilities in order to stand out from the crowd.

Work on your marketing strategies, work on curb appeal, pretty much try and work on everything on your end in order to be able to attract new tenants to your property.

To wrap things up

In the end, the situation regarding the pandemic has evolved in such a way that rental prices are dropping fast in London, and the situation is pretty unlikely to recover any time soon. Take from that what you will, since the situation in which you are, heavily dictates how this affects you. 

Whatever might happen, and no matter how the situation continues to evolve, London is always going to be a go-to destination due to its abundance of history and culture, as well as the vast variety of activities to offer.

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