Latest data from estate agency Chestertons reveals a 125% increase in the number of landlords choosing to reduce their asking rents in February, in reaction to shifting market conditions in the capital.
The agency – one of London’s largest – believes that rents have dropped by up to 10% in some areas compared to the same time last year.
Figures show that there are nearly 40% more properties on the market to rent in London compared to last year and fewer tenants actively looking to move.
This combination is putting pressure on landlords to reduce their prices in order to secure a tenant and avoid costly void periods.
Adam Jennings, Head of Lettings, said, “February didn’t see the volume of new tenants entering the market that many landlords had expected.
“At the same time, the number of available rental properties continued to rise which has left landlords little option but to start reviewing their prices. Landlords that have become accustomed to continually rising rents since Covid and aren’t willing to adjust to the current market conditions are increasingly finding themselves with empty properties, a situation which was very rare last year.”
Chestertons expects that if rents continue to fall over the next couple of months, more tenants will lock themselves into long-term tenancies, which will rapidly deplete the flow of rental properties on the market.
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