DStv Channel 403 Tuesday, 14 January 2025

Renters despair over cut-throat London market

Rental prices for a single room in London reached a record high in the first quarter of this year

LONDON - Many prospective tenants have had to act fast and bid high to secure a home in a competitive rental market fuelled by high tenant demand and a dwindling supply.

Stories abound of prospective tenants being asked to pay 12 months' rent upfront to secure a property, offering more than the asking price and detailed background checks.

Housing body Propertymark found that for every 10 new prospective tenants registering in its member branches in February, there was only one property available for rent. 

Matt Hutchinson, director of SpareRoom, a popular flat-sharing platform, said the hardest part for renters is "getting the attention of the landlord".

"Most people aren't even getting a viewing," he added.

Landlords have passed on cost-of-living increases to their tenants, but higher prices have been made worse by a lack of supply
AFP/File | ISABEL INFANTES

London rents have historically been higher than the rest of the UK but in the first quarter of this year they have sky-rocketed, a SpareRoom study said.

Now, the average room rent in London is at a record high of £952 (nearly $1,200) per month.

As mortgage rates and other cost-of-living pressures jumped last year, landlords passed on costs to tenants or simply chose to sell, pushing up rents and squeezing already hard-pressed supply.

This is the "hardest time we've ever seen for renters, and we've been running the site for 20 years now," says Hutchinson.

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