There are more rental properties for tenants to choose from than any other time since Covid, according to London estate agency Chestertons, which is currently marketing around 45% more properties to rent compared to last year.
The agency believes that much of this is due to a large number of three-year tenancies agreed by tenants at lower-than-average rates during the pandemic coming to an end.
Adam Jennings, Head of Lettings at Chestertons, explains: “At the height of the pandemic, rents dropped considerably and gave tenants the opportunity to secure a property that they might not have previously been able to afford. To give both, the tenant and landlord, a greater degree of security during those unsettling months, many of the tenancies agreed were for up to three years. These contracts are now coming to an end and many of the properties are now coming back onto the market, giving tenants looking to move a greater choice.”
Tenants appear to be making the most of these market conditions as Chestertons’ data showed a 12% increase in rental enquiries and 54% more viewings being arranged compared to December 2022.
With a larger pool of available properties, landlords are having to be more flexible with their rents. In December, Chestertons saw 46% more of its landlords agreeing to a rent reduction compared to December 2022. “Although tenants are enjoying more choice right now, we advise them to start their search as early as possible as London’s rental market remains extremely competitive”, Jennings adds.
Chestertons is forecasting a 5% increase in rents across the UK and London in 2024, followed by 3-3.5% in 2025 as the accumulation of new supply begins to soak up demand.
