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The demand for private rentals in and around London has surged over the last year due to a drastic decline in landlords and those investing in properties for rental purposes. Over half of rental properties sold in March did not return to the rental market, resulting in rental price hikes as demand remains.
But why has this happened?
A recent report from Propertymark suggests that the ratio of prospective tenants to rental properties may be partially due to lifestyle changes born from the global pandemic meaning that hybrid working and a new work-from-home culture has meant that homeowners can pick their living locations without considering commutes and their office locations.
Between March 2019 and March 2022, the number of properties listed by Estate Agents fell from 30.4 to 15.6.
The report also states that 94% of landlords in the same period who pulled their property from the rental market did so to sell it.
Rental prices surge as the number of available properties plummets.
Another major contributor to this situation is significant legislation changes made by the UK Government in a quest to “improve the sector” however, these changes are making the UK rental market undesirable to landlords and consequently having the opposite effect,”
Austin Hayes from Austin Homes explains, “This shift is creating challenges for those looking for flexibility in the location they live, as well as the talent a post-Brexit Britain needs to attract, the only party that will suffer from the relentless legislation and extra taxes are the tenants and I am sure the government did not want to target this group of people.”
94% of rental properties sold last year didn’t go back into the rental market.
On a positive note, Landlords who are persevering with the rental market are seeing record highs in rental prices, and a decrease in unpaid rents and damages as renting a property in London becomes harder.
If you would like to enquire about renting your property with Austin Homes or you would like more information about our property management services, get in touch today; info@austinhomes.london, 020 7193 6985.
Miss. Claire White
W. Why Media
E. claire@whymedia.com