New research by the Benham and Reeves agency has revealed how a lack of London rental properties has pushed up the cost of renting over the last year.
The research shows that:
- Across London, the number of available rental properties listed on the market declined by 48 per cent between Q3 of this year and Q3 2020;
- At the same time, the average cost of renting has increased by £109 per month;
- Across boroughs where the level of rental stock has fallen by between 10 to 30 per cent year on year, the average cost of renting has climbed by four per cent - an increase of £49 per month for the average tenant;
- This monthly cost increase climbs to £95 per month in boroughs where rental stock has dropped between 30 and 50 per cent versus last year, a six per cent increase in the average cost of renting;
- In no less than 10 London boroughs, the level of available rental stock currently on the market has more than halved in the last year - with declines of between 54 to 70 per cent;
- At the same time, the cost of renting across these worst-hit boroughs has climbed by nine per cent on average, equating to a rental increase of £179 per month.
Director of Benham and Reeves, Marc von Grundherr, comments: “Restrictions imposed as a result of the pandemic saw demand for London rental properties evaporate almost overnight and many landlords were forced to dramatically reduce their rental income expectations simply to secure a tenant.
“However, we’ve seen waves of tenant demand return to the capital as social and workplace restrictions have been eased but while this demand is starting to snowball, the level of available rental stock remains notably lower than it was a year ago.
“As a result, the cost of renting has climbed quite considerably in many boroughs, with tenants now paying hundreds of pounds more a month as a result.
“Should stock levels remain muted, there’s no doubt that this upward trend will continue and the cost of renting in London will climb even further.”