Rents are going up… but not in London
Landlords who have invested in studio flats in London are finding themselves badly squeezed in the current rental market, according to the latest market analysis from Rightmove. Asking rents hit record highs outside London in September – up to £964 per month - but in contrast the Capital is seeing rents fall.
The ongoing pandemic continues to impacting the market, with two-bedroom homes proving most popular with potential tenants. As working from home has become the norm for many Londoners, a spare room to work in is top of renters’ wish lists.
Right across the country – with the exception of London - increased demand is pushing up rents, with the strongest price growth in the South West and the North of England. Asking rents are up 4% in the South West and up 3% or more in the three regions of the North East, North West, and Yorkshire and the Humber.
The picture is very different in London. Asking rents are 3% lower than this time last year with available rental homes up by 80% on last September – and in inner London asking rents are a huge 6.8% down. For tenants with jobs in the capital and who are thinking ahead, whether or not they are currently working from home, now may be the ideal the time to secure a property in an area with a quicker (and cheaper) commute to work. And for single people, there has never been a better time to secure a studio flat at a knock-down rent.
For landlords with one or more studio flats in their portfolio, now may be the time to consider using the services of a letting agent with good local knowledge and a strong feel for the market. There may not be a huge pool of potential tenants out there looking for a property like yours but a professional agent with a good reputation in the London market is likely to be able to promote your property more effectively than you can alone.
Alternatively, why not take a look at our automated lettings platform PlanetRent. We have partnered with Rightmove and Zoopla to enable you to market your property online quickly and easily. It’s easy to access and pay-as-you-go, so why not give it a go and see if PlanetRent could work for you.
Author : Maryanne Bowring