As the capital gradually returns to business as usual, renters, landlords and estate agents in central London are seeing some positive changes in the London lettings market.
In the second quarter of 2021, our letting office experienced a 700 per cent increase in demand compared to the first quarter. Head of London Lettings, Matt Staton ascribes this exponential rise to the renewed sense of certainty that has come with the “unlocking of lockdown.”
The Growth of Prime Central London Lettings
In the second quarter of this year, rents in prime central London areas rose by one per cent: the highest annual growth seen since 2007. Rental values for apartments increased by 0.4 per cent, while the growing demand for outside space pushed house rents up by 1.8 per cent. When measured against the low point for rental yields experienced in May 2016, these increases are a clear indicator of a steady upward trend. Currently, property experts in London are predicting average five-year growth of +14.2 per cent across the prime London letting market.
In this short video, Matt Staton reflects on the reasons behind the sudden surge in activity. He explains that summer has always been a busy time for the London renting market. Students and families traditionally look for new homes in summer, while many corporate relocation moves also take place at this time of year. However, summer 2021 has seen activity well in excess of our usual expectations.
Watch the full video to hear what Matt, Head of lettings says about the recovery of the central London residential lettings market, and why he believes that “there couldn’t be a better time to rent.”
Renters’ Priorities Have Changed
The ‘pandemic exodus’ saw urban dwellers heading out of central London in search of more indoor and outdoor space. But as the capital slowly returns to normal, we are increasingly hearing from renters who are excited to get back to the city centre buzz.
In a post-pandemic world, many renters have revised their priorities, with increased emphasis on the quality of home life as well as the lifestyle on offer in the local area.
What Do Post-Pandemic Renters Want?
Fully-furnished properties with exceptionally high quality furnishings, fixtures and fittings are proving increasingly popular. At the higher end of the market, properties with pools and home gyms are in demand. The new home working flexibility has also led to an interest in homes incorporating home office spaces.
Another keynote of post-pandemic life is the desire to live in areas with access to open, green spaces and a strong sense of community. The ability to walk or cycle to work, as well as being able to walk children to one of London’s many excellent schools, is also top of renters’ wish lists.
Will More Landlords Open Their Doors to Pets?
Allowing tenants to keep a pet continues to be a red line for many landlords. However, recent government guidelines say a tenant’s pet request should only be refused if the landlord can provide a ‘good reason’. The Dogs and Domestic Animals (Accommodation and Protection) Bill is now progressing to a second reading. If introduced, this piece of legislation could strengthen tenants’ rights to keep a pet.
Rental stock in the capital is currently down by 50%, so if you are looking for luxury properties to rent in London, we will use our extensive knowledge and experience to help you find the perfect new home. If you are a landlord with a prime central London property to let, we would also be delighted to hear from you.
Simply contact one of our property experts and let us know how we can help.