Shock Forecast of 20% Rent Rises in Coming Months in London

Chestertons, a prominent London lettings agency, has warned about the upcoming summer rental market, stating that tenants in the capital will face intense competition. The agency highlights a growing influx of new residents into the city while the number of available rental properties declines.

Adam Jennings, a regional London director at Chestertons, explains that the late-May bank holiday marks the beginning of the summer market, coinciding with the end of many 12-month and 18-month tenancies, an increase in short-term summer rentals, students searching for accommodation after exams, and companies relocating staff in preparation for the new school term.

Due to the trend of landlords selling their investments in recent years and experienced tenants negotiating longer tenancies of three years or more, there will be significantly fewer properties available for the incoming tenants. This scarcity of supply is expected to create one of the most fiercely competitive rental markets on record, potentially leading to further price increases.

Jennings predicts a modest increase of around 10% in the number of properties coming onto the market in June. However, this increase will be overshadowed by the high demand from tenants seeking accommodation. Last year, Chestertons observed a 23% rise in registered tenants from May to June; a similar surge is anticipated this year.

As a result of this supply-demand imbalance, rental prices, which have remained relatively stagnant since last autumn, could surge by 15% to 20% in the coming months. Chestertons advises landlords to take advantage of the current situation and list their properties promptly.

In light of the projected challenges in the London rental market this summer, tenants are advised to act swiftly and be prepared for heightened competition when searching for suitable accommodation.