London rents and demand both go through the roof, says agency

London lettings agency Chestertons says the number of tenants in the capital is now at an annual high. 

The agency’s latest market review, comparing September 2020 to 2021, shows that it has registered 35 per cent more tenants this year compared to last year and that rents are now 15 per cent higher.

Richard Davies, Chestertons’ head of lettings, says: “This continued surge in demand, especially in Prime Central London, is heavily impacting the supply of available properties to rent in the capital. As a result, rents have risen sharply and tenants now have a much more limited choice than they did last year. 

“On average they are only able to view one or two properties that meet their criteria, which greatly differs from a year ago when they were able to view at least five.”

Chestertons’ figures show that there were 68 per cent fewer properties available for rent in September 2021 compared to September 2020 whilst the number of tenants moving into their new rental home has risen by 13 per cent.

Davies concludes: “With demand outstripping supply, landlords are currently in a strong position and those who have been considered selling their property may be persuaded to keep it as a rental investment given that rental yields are now increasing.”

Areas of London that have seen a particularly strong increase in tenant enquiries in September 2021 compared to 2020 include Camden (+128 per cent), Hyde Park (+45 per cent), Canary Wharf (+38 per cent) and South Kensington (+32 per cent). 

The number of available properties to rent in these areas was respectively lower with listings in Camden (-74 per cent), Hyde Park (-89 per cent), Canary Wharf (-81 per cent) and South Kensington (-63 per cent) in September 2021 compared to last year.

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