London Property Rentals in 2013 – How will the Market Fare?

The rental market experienced fluctuations in demand in 2012 and we’re likely to see a year of change in 2013 too. We take a look at what landlords can expect this year.

Smaller Properties Remain in High Demand
With budgets still under pressure, most tenants are looking to keep rental costs down. As a result, we expect the current high demand for smaller apartments (studios, one and two beds) to remain high. Tenants are unwilling to pay extra each month for space they don’t need.

Tenants Looking for Value for Money
Whatever their budget, tenants are looking for good value. We’ve moved into a tenants’ market and most know they are in a good position to negotiate. Tenants will continue to expect a high standard of presentation too.

Slowdown in Demand for Larger Properties
The reduction in corporate budgets is having an impact on tenants’ finances resulting in a slowdown in demand for larger family homes. Landlords hoping to find a good tenant will have to be flexible on rent.

Demand Set to Increase Later in 2013
Many tenants are waiting to see what 2013 holds for the economy before deciding whether to move. However, we expect an upturn in demand from overseas professionals later in the year – we are already receiving enquiries from relocation agents acting for overseas professionals. We’re also seeing an increase in professionals moving to London from other parts of the UK.

The longer Term ……
With London’s chronic housing shortage and rental demand continuing to grow, for investors who own London rental property, the long term outlook is good. Of course, the rental market does fluctuate so consult an experienced letting agent who can advise on how to weather any short term dips in the market.