The most recent HomeLet Rental Index released this month shows that rents in London have risen by 3.1 % versus the same time last year; this is up from 0.9% in June.
Meanwhile, our own data from June revealed that there has been a staggering 23% surge in the number of tenants looking to rent compared to the same time last year, however this is not being matched by supply - which is down 19% in the same period.
Our Chief Executive, Paul Smith makes this request to the new Prime Minister:
“The rental market is hitting boiling point, as landlords continue to stray away from the buy to let market and the number of tenants registering to rent continues to rise. Nationally, there are more tenants looking to rent properties, but rental supply is down. We are now at risk of pricing young Londoners out of the capital. I urge Boris Johnson to relax taxation against landlords to encourage investment in housing stock again.”
The Royal Institute of Chartered Surveyors (RICS) agrees, stating:
“In the lettings market, the headline tenant demand indicator (quarterly seasonally adjusted data) picked-up to post the strongest reading since the closing stages of 2016. At the same time, landlord instructions fell once again, extending a run of continuous decline stretching back over the past thirteen quarters. Given the current imbalance between supply and demand, near term rental growth expectations were driven higher, with the headline net balance of +25% in July representing the most elevated reading in twelve quarters.”
Many in the private rented sector warned that any increased cost burden onto landlords, together with a reduction in supply caused by ineffective and arbitrary policies, could lead to rising rents – and one month after the tenant fee ban, this already appears to be having an impact.
Anthony Szabo, FJL Area Director says:
"The residential lettings market in the capital continues to move a pace with transaction numbers across our 11 offices up year on year. This is further evidence that whilst challenges continue to exist for some landlords, demand shows no sign of abating. The uncertainty of Brexit and significant legislation changes with the tenant fee ban enacted in June, have done nothing to stem the flow of enquires from professional tenants seeking accommodation. This is good news for Landlords and ultimately good news for tenants as, with a strengthening lettings market, we would fully expect to see buy to let investment to return at speed.
With in excess of a two decades heritage operating in London and with eleven residential lettings offices, from Blackheath the South to Stoke Newington in the North, Felicity J. Lord are able to assist the cities Landlord and Tenants with expert, friendly advice."