Landlords drop rents in London amid void warnings

Numbers of landlords reducing rents in London have more than doubled recently, new figures show.

Latest data from Chestertons reveals a 125% increase in landlords choosing to lower their asking rents last month.

The agency believes that rents have dropped by up to 10% in some areas compared to the same time last year.

Fewer tenants

Figures also show 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, Chestertons says.

Landlords left little option but to start reviewing their prices.”

Adam Jennings, Head of Lettings (main picture), says: “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,” he says.

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.”

Instructions up

Meanwhile, data released from Foxtons reveals the number of new letting instructions in February was up almost 20%.

Despite being 10% lower than January, the number of instructions is 19% up this year when compared to 2023.

Applicant demand decreased by 15% last month, Foxtons says.

In demand

While South London continued to be the most in demand area, it also saw the largest decline in applicants, 21% lower than the same period in 2023.

London rental prices decreased 2% year-on-year, but rose 3% compared to January, averaging £561.

West London is the only area that saw a year-on-year increase, rising from an average of £459 to £487.

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