Rents Take a Hit in Recent Months
Date Published 15 March 2024
After a recent couple years of rising rents, recent data from agency Chestertons shows a 125% increase in the number of Landlords choosing to reduce asking rents in February. Chestertons believe that this is due to a shift in the changing market conditions across London.
In London it is believed that rents have dropped up to 10% compared to the same time last year. There are now also 40% more properties available to rent when compared to the same time last year because of a drop in potential tenants wanting to move. Both of these factors are putting more pressure on Landlords to reduce their prices in order to secure a tenant and avoid costly void periods.
Adam Jennings, Head of Lettings at Chesterstons, says: 'February didn't see the volume of new tenants entering the market that many Landlords had expected. At the same time, the number of available rental properties continued to rise which has left Landlords little option but to start reviewing their prices. Landlords that have become accustomed to continually rising rents since Covid and aren't willing to adjust to the current market conditions are increasingly finding themselves with empty properties, a situation which was very rare last year.'
For tenants these reductions mean that properties are becoming more affordable. However, it also means if rents were to lower that tenants would be looking to secure longer tenancies which will deplete the stock of rental properties on the market.
