End of ‘Covid tenancies’ boosts rental supply - agency’s analysis

There are more rental properties for tenants to choose from than any other time since Covid, according to London estate agency Chestertons.

The agency claims it’s currently marketing around 45 per cent more properties to rent compared to last year., and it says this is down to a large number of three-year tenancies - agreed by renters at lower-than-average rates during the pandemic - coming to an end at last.

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 per cent increase in rental enquiries and 54 per cent 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 per cent 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 5.0 per cent increase in rents across the UK and London in 2024, followed by 3.0 to 3.5 per cent in 2025 as the accumulation of new supply begins to soak up demand.