Demand for rental properties soars in London

The demand for rental Properties in London has increased, according to new findings.

Research published by the Sequence Index revealed that new tenancies across the UK increased by 15 per cent over the last year.

Monthly rental prices also increased by eight per cent in January. However the findings showed that, although there was a monthly increase, it is down one per cent compared with December 2013.

In London, rents have not seen the same growth and are up one per cent since January 2013 and down two per cent since December 2013, taking the average monthly rent to £1,395.

However, London saw the biggest annual increase in new tenancies, with a 17 per cent rise. 

Commenting on the findings, Barnard Marcus, spokesman for William H Brown, Fox & Sons said that there has been an increase in the number of people wanting to live in the capital.

He said: "This high level of activity is due to the sheer volume of new tenants coming into the market as new tenant applications increased by six per cent annually across the UK and ten per cent in London. Across the UK the supply is keeping up with demand, with new rental properties increasing by six per cent annually, however, in London there is a shortfall, down four per cent annually."

Mr Marcus added that there is set to be an increase in properties coming onto the market, thanks to the resurgence of buy-to-let lending.

"This news comes in spite of the retraction of Funding for Lending to the mortgage market and highlights just how strong this market is. The pipeline of new investors we are seeing will continue the flow of properties onto the market and appease the demand, which should in turn, keep rents stable," he explained.

Separate research from HSBC revealed that there is a growing division between those who have got enough money to invest in property and those who have not.

Published 27th February, 2014

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