London rental demand up as offices and students return

The demand for London rental properties has increased by almost 60 per cent in the third quarter compared to the same period last year.

Lettings company The Vesper Group says its figure is based on enquiry numbers received for its individual managed rental properties.

It says the return of office employees and students lie behind the rise, which has now led to a shortage of available properties. 

Vesper says its average London rental property is now on the market for less than a week, compared to almost a month in 2020.

The most popular areas for renters are Battersea, Canary Wharf, Clapham and South Kensington.

The surge in interest has resulted in a price hike across all parts of the capital, with the cost of renting up by 10 per cent in the same period - although this new total is still down on the 2019 average.

James Cameron, Vesper Group director, says: “London life is rapidly resuming, with the race to find a rental property in the capital now as competitive as it’s ever been. Employees heading back to their London-based jobs, combined with a typically buoyant student market, has resulted in our current enquiry levels topping those for 2019.

“In fact the rental market is, unusually, now even busier than the sales market, which was unthinkable just a few months ago."

Cameron continues: “With demand outstripping supply, rents are increasing and - if the limited availability of properties continues - it won't be long before they surpass 2019 levels.

“We’re now seeing greater urgency and flexibility from tenants, who are having to compromise as well as be more decisive to secure a property within their budget. Traditionally we now enter a quieter time of the year for rental properties, but at present we don’t see the market slowing.”

The Vesper Group has offices in London, Manchester, Singapore and the Middle East.