Another piece of research has revealed that property available to rent in prime central London has risen sharply.
Data from the report by property company LosRes reveals that in the third quarter of this year, stock levels have risen substantially since the same period in 2015.
In contrast however, there was actually 4% fall in the number of properties actually rented out.
Rising stock
A LosRes spokesperson said: ‘Increased stock levels have meant that tenants are able to negotiate on price. A slow July market, following the referendum result, is impacting on the quarterly figures.’[1]
Taking prime central London properties as a whole, the number of homes let fell by 17% in comparison with the same period one year ago. August and September however saw increases of five and seven per cent respectively.
Concluding, the report said: ‘The majority of our subscribers surveyed still expect achieved rental values in 2016 to end the year down on 2015 levels, but the proportion expecting a fall has dropped since our previous survey in Q2 2016. This quarter, 32 per cent of respondents expect average rental values to end the year at the same level, or higher, than the end of 2015, up from 22 per cent in Q2 2016.’[1]
More properties available to let in prime central London
Falling rent
This report comes soon after a similar one conducted by lettings agency and property consultancy JLL.
Research Director, Neil Chegwidden, said: ‘With weakened tenant demand, the increased supply of properties on the market is not being eroded. Available supply has also been boosted by owners electing to rent out their properties as opposed to selling them, given the diminished demand in the sales market.’[2]
‘Although most are choosing to remain in their current accommodation due to the upheavel and cost of a move, some are moving elsewhere to take advantage of these conditions,’ he added.[2]
[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/11/another-report-of-surge-in-supply-of-prime-london-homes-to-let
[2] https://www.lettingagenttoday.co.uk/breaking-news/2016/8/over-supply-leads-to-rents-falling-in-prime-london-lettings-market