What Can Our Landlords Expect From Summer 2021?
In what is now a tenants market, Central London Landlords have been hit hard by the pandemic - what can we expect to see in the coming months as London slowly opens up..
Central London landlords have been hit hard by the pandemic. The flexible nature of renting coupled with the closure of universities /working from home culture and the collapse of the short let (air b and b) market has meant there has never been a greater supply of properties in Central London.
This huge increase in supply and the reduction in demand has meant that the market has at many price points stagnated. The knee jerk response from many landlords was to slash asking prices and offer deals to tenants who were considering giving notice. As the months have progressed the price reductions have had a more limited effect and as such have for the most part slowed down. That said some apartments that we deal with have asking rents more than 30% cheaper than the pre covid levels.
While this is not good news for landlords it does bring what for many is being a once in a lifetime opportunity for tenants, the opportunity to live in central London at a price that is affordable to them. Since the announcing of the roadmap, we have seen a steep increase in the number of sharers living in vibrant areas of zone two (on the tube map) such as Clapham / Finsbury Park exploring the opportunities with many moving to the centre.
While Central London remains quiet if all goes to plan with the roadmap the 12th of April is not far away and with that comes 70+ road closures in Westminster with a focus on Soho meaning that things will spring back to life. This combined with a gradual return to the working environment and the desire to avoid public transport after a year off it means that with every week that passes there is an increase in tenant enquires wanting to be in the centre for the reopening.
While we do not expect rents to shoot back up overnight the increased activity in the market has meant that increasingly asking prices are being met and unlike much of the past year multiple offers are being received on certain types of properties. If you have ever wanted to live centrally there has never been a more affordable time to do so and for some when you factor in the savings on travel and Council tax (Westminster is the cheapest borough in the country) you might even be pleasantly surprised and find yourself better off.
To our Landlords, my advice is be patient and be flexible. It’s a long term game and after years of flourishing in an affluent market, it may be a while before the market fully recovers and rents recover to pre-covid status.
If you would like your property Re-valuing for Sales or Rent, please do give our GLP Residential Team a call on 0207 113 1066.
Warm Regards
Rob Hill, Director
Greater London Properties