How the London Rental Market Has Changed in 2021

How the London Rental Market Has Changed in 2021

2021, as well as 2020, has been a super rough time for us all. We are only recently beginning to bounce back after the COVID pandemic, and only now are we able to see the impact it has had on society.  

Almost every industry has drastically changed within the past year, and the housing industry is no exception

There are a plethora of changes that have occurred within the rental market, some of which may be good or bad, depending on who you ask.  

In this article, we will be discussing exactly how the London rental market has changed in 2021 and the people it is going to affect the most.  

Great News for Tenants, But Terrible News for Landlords 

One of the most recent changes to the rental market that will make tenants rejoice but landlords cower, is the fact that renting prices are dropping. 

 
This means, if you are looking to rent a property, there has never been a better time. On the other hand, if you were looking into purchasing a property in hopes of making a lucrative investment through renting, then it may be better to hang on for a while.  

The reason behind the drop in rental prices is because, since the COVID pandemic, landlords have been struggling to find tenants for their properties. During the midst of COVID, people were just not willing to make big life changes such as renting a property in a new location, and instead opting to stay where they were or stay with family members.  

In turn, this caused rental prices to drop as an incentive to make more would-be tenants interested in renting a property.  

The effect of this is still being felt today as the prices for rent continues to drop further.  

So, now may just be the best opportunity you could ever get to rent a property in a new location and get a fresh start.  

rental properties

Rental Properties are Becoming High-Risk, But High-Reward Investments  

Another one of the shifts in the housing industry that has been caused by the COVID pandemic is that rental properties have quickly become a high-risk / high-reward investment, compared to the relatively stable nature it used to have before.  

This can be accredited to the drop in costs for rent which we mentioned in the previous section and the knock-on effects that will have.

  
Because the cost for rent is so low right now, it is more than likely that they may skyrocket in the future. 

 
This means that even though investing in a rental property may not be the best idea for a landlord in terms of earning potential in the near future, it could become extremely profitable in a few years, and the return on investment will be insane.  

For would-be landlords who don't mind taking a slight risk and dealing with less than stellar returns on Investment right now, there is an opportunity to make exponential returns in the future once the low prices inevitably rise.  

The question of if prices are going to go back up is not a matter of if, but when. After the pandemic is all but a memory, people will once again rekindle their desire to rent in London, and when that happens, landlords who took the risk are going to have a great time.  

 

Conclusion 

All-in-all, for those of you who are looking to rent a property to reside in London, then now would be a perfect time. On the other hand, for those of you would-be investors out there, it may be better to look elsewhere unless you are capable of accepting a higher than usual risk.  

If you are interested in renting or even purchasing a property in London, feel free to take a look around on our website. We have all the most up-to-date properties on the market for sale, and we will be more than happy to help you with any and all problems you may face.  

Good luck.  

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Fees

Refundable Holding deposit

Capped at 1 weeks rent

Security Deposit

Capped at 5 weeks rent for annual rental under £50,000, or 6 weeks rent for annual rental over £50,000

Rent

The agreed monthly rent

Changes to tenancy

Capped at £50 inc VAT

Early termination charge

Not exceeding the landlord’s financial losses

Late payment of rent

Interest of 3% above BoE base rate for each day the rent is late, once it is 14 days overdue

Replacement keys

Reasonable costs or give the tenant the option to purchase themselves

Utilities, council tax, communication services, TV Licence etc

Tenants own responsibility unless otherwise stated in contract

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