Properties for rent in London are increasing in demand, despite the reduced available property stock. This growing gap in the market presents a great opportunity for private landlords to invest in the London rental sector. Read on to learn more about the current market and why you should start investing now.
The current London rental market
According to Zoopla, rental prices have increased by 11.4 % since 2021. This increase is due to the strong demand for rental properties combined with a lack of available property stock in some parts of the UK, especially London.
Savills UK explains that due to lack of stock, tenants are opting to stay longer in their current London properties. This has encouraged an even greater demand and therefore, a very competitive market. Further to the problem is that, despite the fact the rental demand is increasing, the available rental properties are decreasing as high as 50% compared to last year.
An opportunity to invest in properties for rent in London?
In the post-Covid area, office workers, students and the like have flocked back to the City due to ‘back to office’ rules. As a result, London is desperate for stock. This has been proved by the abnormally high number of applications for our properties at Rickman Properties and other London estate agents. In fact, one of our property rentals in Kensington received nearly 50 enquiries in just 3 days!
Are private landlords at risk?
Despite the coming challenges for landlords, experts have outlined that the strong rental growth in the capital continues apace amidst the mortgage pipeline “currently breaking all previous records” due to the Bank of England keeping Base Rate exceptionally low. Furthermore, according to a recent report from Zoopla, the average London rent has increased by an average of 11% this year, with no signs of demand abating. Both represent the excellent opportunity for private landlords to invest in the property rental market.
The silver lining in every cloud is this moment. London is again a hot destination to live in – so it’s time to invest in the future! Rickman Properties has the experience to accomplish all duties related to renting properties. Contact us today on 020 7937 9777 or email us at email@example.com to get started.