In July 2021, London private housing rents fell compared to the previous year, as the opportunity to work from home meant that being close to city centres was no longer the main priority for those who work in the capital.
Some people even purchased their first home online without viewing it as the entire sector went virtual, and agents reported a record in August – usually known as the quietest month of the year.
Falling rents and rising property prices have transformed the renting sector in the capital, making it cheaper than buying by a larger margin than anywhere else in the country. The rental market is looking very promising, with a 17% rise in new tenant registrations and another 10% increase in letting agreements.
With a strong resurgence expected in the rental sector, this new gap in affordability will soon narrow as London working life makes a comeback. Despite the temporary shutdown of all things exciting, the city is waking up to the demand for rentals that are expected to continue as normalcy returns.
After almost a year of lockdown life, many families and homeowners have considered leaving their London life for additional home amenities such as bigger gardens and extra living space that they may have not had in their previous homes.
Before the pandemic, renters and homeowners dreamed of open-plan kitchen-dining areas that dominated the downstairs area. Now, those same people are searching for homes with a separate reception area for privacy.
Despite this and the financial uncertainty, the total value of property in the capital increased during the pandemic, to an impressive £1.8 trillion, according to research from Savills.
As the idea of living near a tube station has now progressed into a less desired option – due to working from home becoming the norm – the luxury of living close to a London park is more important than ever before. Those who are working from home want a lunchtime escape and living in a property close to garden amenities is seen as the solution by many.
This change in requirements is something that would’ve been almost unimaginable in pre-pandemic life. However, with bigger cooperative companies, such as Apple, looking to get employees back in the office, it is expected that this will soon change.
According to research from Halifax, house prices across the UK have grown by over £22,000 in the last year. In London, however, prices have lagged due to the rise of the lockdown desires we mention above.
Despite the expectation that many will be searching for more, there is no doubt that people will still come to London searching for the opportunities it has to offer those looking for more in their careers, something that will always set the city apart from everywhere else.
House prices in the mainstream market are predicted to increase by 12.6% by 2025. Renting has fallen behind in most areas of London, but that isn’t necessarily a bad thing – it has simply improved affordability relative to earnings.
It is no secret that busy London has slowed down in recent times. But, as we gradually adjust to life as we know it, the city is becoming alive again – at a comforting pace.
Lower demands for rental properties have been partly due to loss of earnings and those who are taking the work from home route, but, in a rapid turn of events, renting in London has become more affordable than it has ever been – with middle-income earners able to rent in the city for the first time in years.
How has the London property market affected you this year? Do you see a change in the future?
Here at Sloane Stanley, we are proud to provide residential properties that make a true difference to your London experience. Could one of our properties be your new home? Get in touch with us today to find out more.