Renting - a fast catching trend in London

Posted under General by Alan

London is witnessing a fast catching trend: Those who can’t afford to buy are renting and those who find no customers to sell are letting. The number of property sales in London has gone down by 50%. The estate agents are busier with ‘To Let’ transactions than with ‘For Sale’. People are avoiding borrowing due to fear of further slump in the market.

The latest Knight Frank London Residential Review reveals 30% rise in lettings across London offices. 30% more are offering to rent their properties, thereby balancing supply and demand position in the letting market.

The old perception about renting that it was second-rate or ‘dead money’ has changed dramatically. Renting is now considered to provide more flexibility and value for money. It is becoming a favourite option with families and students. With large number of properties in London available for letting, the high growth in rental values is likely to drop back to 5% from existing 16%, providing a better deal to the renters.

The Royal Institution of Chartered Surveyors reported very fast rise in the letting instructions in London. 43% of surveyors reported rise in lettings in July. A higher number of “forced-to-let” landlords are emerging in comparison to the old buy-to-let landlords, creating a situation of larger supply than demand in London. The rise in to-let properties has led to a fall of 5% in rents in Chelsea, South Kensington and Knightsbridge.

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