{"id":20894,"date":"2022-07-01T05:34:28","date_gmt":"2022-07-01T04:34:28","guid":{"rendered":"https:\/\/www.benhams.com\/news\/?p=20894"},"modified":"2025-12-04T07:15:36","modified_gmt":"2025-12-04T07:15:36","slug":"rental-demand-still-soaring-in-london","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/news\/property-rental-market\/rental-demand-still-soaring-in-london\/","title":{"rendered":"Rental demand still soaring in London"},"content":{"rendered":"

\"cyclist-in-the-city\"The London rental market is showing no signs of cooling down.\u00a0 In fact, demand for rental accommodation in the Capital remains at an all-time high, far outstripping the supply of properties available.\u00a0 New rental<\/a> listings across our 19 London lettings branches are down 18% compared to Q2 2021. And with interest rates rising again, the tables have switched, and it is cheaper to rent than service a mortgage for the same amount of outlay. This is a reversal of pre-pandemic conditions and of course, applies to London mainly, where property prices are higher than other parts of the UK.<\/p>\n

Most of our branches are letting apartments after only one or two viewings at most, and usually our teams will have received and had an offer agreed on a property from an applicant on our waiting lists, before it reaches our website.\u00a0 So London is back to its pre-pandemic economy and lifestyle.\u00a0 The hunger for a return to normality is overwhelming \u2013 and we don\u2019t see the shortage of London rental properties<\/a> easing for the foreseeable future.<\/p>\n

Several new property developments or new phases at existing developments have been completing recently but this is only bringing a tiny fraction of properties to market and we are urgently looking for new stock.\u00a0 So if you are completing on a new buy-to-let property or have a tenant moving out soon, please call your local Benham & Reeves branch<\/a> for an up-to-date rental appraisal.<\/p>\n

Residential tenants\u2019 priorities continue to shift<\/h2>\n

\"ResidentialA key trend we\u2019re seeing now is the gradual shift in tenants\u2019 priorities as they adapt to a new post-pandemic lifestyle.\u00a0 And there are some interesting changes in priority here.\u00a0While the desire for more space (both outdoor space and a work-from-home space) continues, it is often no longer seen to be essential as it was.\u00a0 And certainly not if it means a much higher rent.<\/p>\n

Affordability is a growing issue for applicants now and many have more restricted accommodation budgets due to soaring inflation and the rising cost of living.\u00a0 So they\u2019ll only wish to pay rent for space they really need.\u00a0 If that means compromising by working at the kitchen table rather than a dedicated office space (or spare bedroom) then that\u2019s fine.<\/p>\n

Lifestyle is also now more important than previously.\u00a0 Some applicants are now looking for a home closer to their place of work, allowing them to walk to the office – cutting their travel costs and improving their commute.<\/p>\n

This desire for a better lifestyle is also prompting some applicants to move from older properties that may be looking a bit tired, to a brand-new apartment in a development with high spec homes and amenities, if they can find one.\u00a0 This too is not just a lifestyle choice, it\u2019s often a cost-saving move too.\u00a0 A development closer to their office, with its own gym, pool and concierge could mean a tenant could cancel their gym membership and cut transport costs so actually save money in the long run while enjoying a higher specification home.<\/p>\n

International students flocking back to London universities<\/h2>\n

\"InternationalWe are already seeing a surge in rental enquiries from international students planning to move to London in September for the new university term and many students have been actively looking for a property since the start of this year.\u00a0 They\u2019ve been warned by friends how difficult it is to find a rental property<\/a> in London right now.<\/p>\n

Those that can afford to are often signing a tenancy now but taking occupation until September.\u00a0 They\u2019ll pay to do this to secure a property rather than find themselves without a home in early September when they arrive in London and need to feel settled.<\/p>\n

We\u2019re also seeing a lot of enquiries from students already living in London who are now looking to move on after their first year, often because they rushed into making a quick decision last year and are now not happy with the flat they\u2019re now living in.<\/p>\n

Rental demand across London:<\/h2>\n

The City and East London<\/h2>\n

\"TheRental properties across the City<\/a> and East London<\/a> are letting quickly, and we usually receive an offer after only one or two viewings.\u00a0 Online viewings remain extremely important too and typically we might receive 10 enquiries on a property almost instantly and then receive one or two serious offers based on this.\u00a0There is a little more movement in the East London rental market now and tenants can shop around a little more than was possible earlier in the year, as some tenants are now vacating their properties, often to buy their first home, or as new developments launch after a couple of years of delayed completions.<\/p>\n

So the rental market in East London is stabilising and although renewal levels are still high, there is more choice for applicants, although they still need to make an offer quickly to secure their chosen property.\u00a0 Rents are high though, typically 5% – 7% above pre-pandemic levels, but in some cases up to 15% higher.<\/p>\n

Developments offering both a high spec and good value for money are at the top of many wish lists.\u00a0 So flats at developments such as New Market Place in East Ham<\/a> have generated enormous interest and are rented as soon as they become available.\u00a0 Similarly, while at a slightly higher price point but still offering excellent value, Merino Wharf at London Dock<\/a> and London Square Greenwich<\/a> are also much in demand by City professionals.<\/p>\n

The Crossrail effect<\/a> is also transforming rental demand in areas close to Elizabeth Line stations.\u00a0 We simply can\u2019t get enough stock in schemes such as Royal Arsenal Riverside<\/a>, a highly popular development with its own Crossrail station in Woolwich.\u00a0 Professionals from tech, finance and legal sectors have been quick to snap up rental properties here now that journey times to the City and central London have been slashed.<\/p>\n

West London\u00a0 sever shortage of rental stock<\/h2>\n

Our West London lettings branches<\/a> are all short of stock and have waiting lists of applicants.\u00a0 Apartments are letting immediately, and there are currently no void periods between tenants.\u00a0 \u00a0In many developments, we are now carrying out block viewings with multiple applicants.\u00a0 Typically we\u2019ll receive one or two offers immediately.<\/p>\n

\"WestThere\u2019s a real uptick in demand from international students looking for homes in areas like Fulham Reach<\/a> and Sovereign Court<\/a>, both situated in Hammersmith, particularly Chinese and Thai students.\u00a0 They\u2019re now looking for a home ahead of the September university term and we will have more properties becoming available in these developments over the next few weeks, giving them slightly more choice.<\/p>\n

New property development The Green Quarter in Southall<\/a> is seeing strong demand, increasing further owing to the opening of the Elizabeth Line (Crossrail) and we\u2019re also handling new instructions at Hayes Village<\/a> and Western Circus in Acton \u2013 again these are seeing strong demand. While over at White City Living<\/a> and Television Centre<\/a> in Shepherd\u2019s Bush, apartments are also in high demand and availability here is very limited.<\/p>\n

Central London and Nine Elms<\/h2>\n

Rental demand is strong in Nine Elms and our lettings branch<\/a> currently has no apartments available to rent – we simply don\u2019t have enough supply to meet demand and have waiting lists of fully referenced tenants ready to make an offer as soon as a flat becomes available.\u00a0 \u00a0Even when new apartments complete, we usually have an offer agreed before completion.\u00a0 We\u2019re currently agreeing deals on flats that will become available in September.<\/p>\n

\"small-students-in-coffee-shop\"Much of the current demand is from wealthy international students who are looking for a London home before they arrive in the UK in September. \u00a0They\u2019ll usually rent (and pay for) a property in advance if this ensures that they will secure their chosen home, rather than risking losing it to someone else. Many have been advised by friends that it is very difficult to find a rental property in London<\/a> so they\u2019re happy to make an offer based on a video tour.\u00a0 This is a trend that has been created by the Covid 19 pandemic and it\u2019s one that is here to stay since it provides a convenient way to decide if a property is right or not.\u00a0 We\u2019ll show an apartment over FaceTime or a WhatApp video call and this is usually sufficient for the applicant to make a decision.<\/p>\n

Apartments at DAMAC Tower<\/a> and Battersea Power Station<\/a> are now completing and these are letting immediately.<\/p>\n

North\/North West London<\/h2>\n

\"North\/NorthWe are chronically short of stock in Hampstead<\/a>, Highgate<\/a> and Dartmouth Park<\/a>, with properties letting immediately.\u00a0 Rents are currently around 10% higher than before the pandemic.\u00a0 Demand is high for larger family homes at the moment as families look to settle down before the start of the September school term.\u00a0 When a new family home goes live on our website, we\u2019re currently receiving 10+ enquiries in the first hour or so.\u00a0 Typically, if the property is well presented, the first applicant will make an offer and take the property for the full asking rent.<\/p>\n

Demand at Beaufort Park in Colindale<\/a> remains very high and we have very little stock here.\u00a0 Findlay House \u2013 the latest building to complete \u2013 has received enormous interest and we have let virtually all our stock.\u00a0 Highbury Stadium Square N5<\/a> and Hale Village and Anthology Hale Works, both in Tottenham N17, are among the other new developments in North London attracting a lot of interest.\u00a0 While Watkin Road in Wembley<\/a> is part of a major regeneration scheme on the fringes of North West London and this development too has been receiving a growing number of enquiries for rental accommodation.<\/p>\n

Ask us for a free market appraisal of your rental property<\/h2>\n

With such high rental demand across London, we urgently need more stock.\u00a0 So if you are completing on a new apartment soon, or have a vacant apartment in London, get in touch<\/a> with your local Benham & Reeves branch for a free market appraisal.\u00a0 Our International offices<\/a> are also able to book in a valuation, free of charge, with one of our experienced team.\u00a0 If you haven\u2019t had your rental investment property valued<\/a> for some time, now is a good time to get an accurate appraisal of what we could achieve.<\/p>\n","protected":false},"excerpt":{"rendered":"

The London rental market is showing no signs of cooling down. In fact, demand for rental accommodation in the Capital remains at an all-time high, far outstripping the supply of properties available. <\/p>\n","protected":false},"author":4,"featured_media":20895,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[443,451,445],"tags":[],"class_list":["post-20894","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlords","category-london-property-market","category-property-rental-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/comments?post=20894"}],"version-history":[{"count":6,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20894\/revisions"}],"predecessor-version":[{"id":27625,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/posts\/20894\/revisions\/27625"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media\/20895"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/media?parent=20894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/categories?post=20894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/news\/wp-json\/wp\/v2\/tags?post=20894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}