Slowdown in central London rental market
Tenant demand in central London is nosediving, according to the National Landlords Association.
The organisation said that the number of landlords reporting a rise in tenant demand over the past quarter has slipped almost 30 percentage points when compared to the same point last year – down to 17% from 45%.
At the same time 40% of landlords in the South East are reporting a rise in tenant demand, highlighting that renters are looking to move out of central London to more affordable suburbs.
This shift in rental demand has been met with a more cautious approach from landlords to purchasing property in the capital, said the NLA.
Just 5% of London landlords plan to purchase more properties in the next quarter, the lowest across all regions, and down from 15% a year ago.
In contrast, the proportion of landlords operating in the North East who plan to buy in the next three months has almost doubled over the last year, from 10% to 19%. The proportion of landlords in Yorkshire looking to buy has also jumped significantly from 10% this time last year to 16% this quarter.
Carolyn Uphill, chairman of the NLA, said: “It looks like central London is simply becoming too expensive for most people, regardless of whether you want to buy, invest or rent. For many tenants the practical solution of moving out of the city to more affordable suburbs with good transport links is becoming increasingly appealing.
“In turn, it seems that landlords have been quick to respond, turning their backs on the capital and looking to other areas where the upfront cost of acquiring property is lower, and the potential yields to be had are higher”.