New year, similar story. We had a very successful but somewhat frustrating Q4 with the lack of supply seen throughout 2022 continuing to be the key hurdle in the prime lettings market.
Whilst the seasonal downturn in applicants was consistent to previous years there was little rebalance between supply and demand in the final quarter with reports that there were, on average, 15 applicants competing for every available property on the market.
Consequently, average rental values in prime central London ended the year 18% higher, or 23% above their pre-pandemic average.
Whilst the number of available rental properties in London is still insufficient, there are signs during the first few weeks of 2023 that the gap is finally beginning to narrow. We therefore expect rents to continue to grow but by a more modest 5% this year as the lack of supply and strong demand persists.
However, some relief and stability should come as the natural cycle of the rental market returns, and more housing becomes available due to a slowdown in the sales market caused by ongoing instability in mortgages and interest rates.
Aspiring investors are well placed to look to purchase properties being marketed at reasonable value, a lack of quality rental stock means improved yields due to increasing rental prices and reducing sales prices.
It is worth repeating that now really is the perfect time to consider renting out your property. We can tailor a tenancy to suit you, whether that is renting your property whilst simultaneously looking for a buyer or finding a tenant for a 6-month let whilst waiting for the sales market to improve. We can help you navigate the process and find the best solution for your needs.
Please don’t hesitate to get in touch, our team is here to assist you with all your rental requirements, from pricing and marketing to tenant screening and property management. We aim to provide our clients with expert guidance and unparalleled service from our team of experienced, industry-trained professionals.
As an independent agency celebrating our 50th anniversary, we take pride in building long-term relationships based on trust, integrity, and a deep understanding of the local market. We strive to make the process of buying, selling and renting a home as efficient and stress-free as possible.
Our goal is to be a valuable resource for all of our clients' property needs and to be their go-to estate agent for life.