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London rental demand rises as landlords return to market

Tenant demand in London's rental market increased in August, three months after the Renters' Rights Act took effect, with more landlords bringing properties to market.

  • Tenant enquiries in London increased by 13% year-on-year in August.
  • New landlord instructions in London rose by approximately 6% year-on-year.
  • The London property sales market is also experiencing growing confidence among buyers and sellers.

Tenant demand in London's rental market saw an increase in August, according to a new report from Chestertons. This rise comes three months after the Renters' Rights Act was introduced.

The Chestertons lettings index indicates that tenant enquiries grew by 13% year-on-year in August. This follows a period where year-on-year enquiries had fallen for five months prior to the Act's introduction on 1 May, before rising in May and June, and then dipping in July.

Concurrently, new landlord instructions in London increased by around 6% year-on-year, contributing to more properties becoming available. Katinka Hill, head of lettings at Chestertons, noted that August's increased activity aligns with typical seasonal trends and is expected to continue into September.

The London property sales market is also showing improved confidence among buyers and sellers ahead of the Autumn Budget. Vendor instructions increased by 14% year-on-year, bringing more homes to the market.

Adam Jennings, Head of Residential at Chestertons, stated that the outlook for the property market is positive. He suggested that greater clarity around the economic outlook, combined with improving consumer sentiment, is supporting confidence after a challenging period.

What this means for you: If you are a tenant in London, there may be more quality homes available to choose from, though decisions may take longer due to increased flexibility.

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