London's tenants set for a rough ride this summer

Posted on Friday, June 2, 2023

London’s summer rental market is predicted to be one of the most challenging on record for renters this year, according to Chestertons who warn that depleted stock levels and an influx of prospective tenants will see both competition and rents rise. 

Adam Jennings, Regional Lettings Director for Chestertons’ Southwest London area, explains: “The late-May bank holiday is known as the gateway to the summer market as many 12-month and 18-month tenancies come to an end; short-term summer rentals increase; students finish exams and begin searching for somewhere to live; and companies start relocating staff to so that children can be ready for the new school term.”

“However, with many landlords having sold their investments over the past few years, and many experienced tenants negotiating in order to extend their tenancies to three years or more, there will be far fewer properties available for all of these new tenants. This will create one of the most competitive markets that we’ve seen and is likely to nudge prices up further.”

Jennings expects that there will be around 10% more properties coming onto the market in June, but this will be dwarfed by the number of tenants looking to move.

Last year, Chestertons registered 23% more tenants in June compared to May and is expecting a similar uplift this year. As a result, rents, which have been flattening out since last autumn, could rise by as much as 15-20% over the next few months which means that, according to Chestertons, now is an ideal time for landlords to list their property.

Via @PropertyReporter