Newly released research, which analysed the changing rental trends brought on by the ongoing pandemic, have revealed which London boroughs are predicted to see a drop in tenant demand.
Spotahome analysed data on the estimated population of each borough and what percentage of this population is reliant on the rental market.
According to the figures, 25% of the capital’s population live within the London rental market, with Tower Hamlets ranking as London’s rental hotspot. 36% of those living within the borough do so in privately rented accommodation, the highest proportion of all London boroughs.
Westminster is home to the second-largest proportion of renters in London, with 33% of residents living within the rental market.
As much as 30% of the population also resides within the rental sector in Newham, Wandsworth and Redbridge.
Havering is home to the lowest proportion of renters, with just 14% of the population living within the rental market, along with Bexley (15%), Bromley (19%), Croydon (19%) and Waltham Forest (19%).
However, the current pandemic is causing a shift in tenant trends. A recent survey found that as many as 60% of office workers in London are considering leaving the city, with many more also finding themselves in financial difficulties and unable to rent. At the same time, demand for rental homes in commuter hubs has also fallen.
Worrying trends that are sure to impact communities across London, not just the rental market.
Nadia Butt, UK and Ireland Country Manager of Spotahome said, “London’s rental market provides a two-way relationship between tenants and the areas they choose to live in. On the one hand, tenants need a place to call home while working in London, but they also bring a benefit to the local community with the money they spend with local businesses.
These renters make up a huge part of the city’s DNA and are vital to supporting the capital both in terms of the work they do and the money they pump back into the city.
However, with yet more lockdown restrictions bringing advice to work from home where possible, many tenants will continue to search outside of London for a more affordable rental option as commuting is no longer such a necessity.
This could have grave implications for not only the London rental market but the local economies across boroughs such as Tower Hamlets, Westminster and Newham, in particular. These central boroughs are home to some of the largest numbers of renters when compared to the total population and so a mass exodus of tenants could be very bad news indeed.
While the cost of living in the capital has declined in recent years due to steady wage growth, with rental prices also currently falling due to low demand, we would like to see more done by the Government to encourage tenants to remain within London until such point they can return to their places of work.”