Rental demand in London has rocketed with three times as many tenants looking for homes as properties available, according to Rightmove’s latest Quarterly Rental Trends Tracker.
The figures from the portal reveal that demand for homes to rent has increased by 81% in the capital compared to the pre-pandemic market, with available properties down by 47%.
Average rents in London have reached a new record of almost £2,200 a month, a 14% increase on a year ago, and the biggest jump in prices recorded by Rightmove in any region.
Across Great Britain, tenant demand is up by 6% and the number of available rental properties is 50% below a year ago. This supply and demand mismatch means many landlords having a choice of tenants with some so called “bidding wars,” among suitable applicants.
According to Rightmove, the supply of properties has been affected by factors including tenants signing longer leases.
Rightmove’s Tim Bannister said: “In the first three months of this year, we’ve seen tenant demand exceed the high levels set last year, which, when coupled with the fewer available homes for rent, has resulted in the most competitive rental market we’ve ever recorded.”
“When it comes to demand, we’re still seeing the effects of the pandemic, whereby tenants are balancing what they need from a home and how close they need to live to work with where they can afford,” he added.
However, there is some optimistic news for tenants in the figures, as the number of new rental properties rose by 5% in March compared to January, and by 16% compared to February.
Read more about this story in the Property Reporter