According to research by Rentd, a rental portal, the demand for rental homes increased in London. The COVID-19 pandemic and the fact that many UK adults worked from home during this time had kept the demand low for rental homes low in 2020 and 2021. However, that shot up in the new year, with the demand increasing in London for a year. This article will discuss this increase and what implications it could have on those looking for a new rented home in this city.
Rental Values and Rental Demand in London
It’s important to understand the current situation of the London rental market in order to make any assumptions about the future of the market. Among various cities in the UK, London was among the worst hit by the effects of the pandemic and the consequent staying at home during that time.
Therefore, the rental prices in London dropped significantly, averaging at about 3% lower than what it was a year ago, according to the research by Rentd. That said, the decrease in rental value has not been consistent in all boroughs, with some increasing than the values of those a year ago.
There has been a gradual increase in the rental values of some boroughs. As of 2022, in Rentd’s latest research, 42% of boroughs in London saw an annual increase in rental values.
At the same time, the demand for rental homes varies among the different boroughs in London. Some of the boroughs with the greatest increase in demand were Bexley, Bromley, Lewisham, Waltham Forest, and Sutton. That said, on an average, in the entirety of London, the demand for rental homes has reached 42%. In addition to that, the annual change in percentage of the demand for rental property is 12%.
It‘s also worth noting that some boroughs in London have a high demand for rental property, but they have had minimal annual change. For example, Bexley has the highest demand at 59%, but the annual change has been only 3%. This clearly indicates that the rental property demand in Bexley has been high for some time, despite the situation of the pandemic. On the other hand, the borough that has seen the most annual change is Barking and Dagenham, with a 23% change in a year.
Last Few Words
The report has clearly shown an overall increasein the demand for rental homes in London, with some over others, but its implications will be evident with time. At this point, it’s impossible to say whether the increase in demand for rental homes will lead to an increase in rental prices. However, what is evident is that the increasing demand will help restore the overall health of the rental market in the city. Therefore, it could lead to positive results for homeowners who want to invest in property in London and give it up for rent.