Adapting to the new London Rental Market
Astonishingly and for the first time in at least a decade, many rental properties are unwanted by tenants and professional tenants looking for a swanky flat are in the driving seat. Why ?
We think there are several factors, all directly related to Brexit.
- Business investment in UK is being held up or cancelled, so jobs are not being created
- Foreign nationals are not being moved here as investment is put on hold
- There is sharp drop in EU inward migration, making demand for rental lower - this is almost certainly EU graduates deciding NOT to settle in London as they don't know if they will be able to stay (and indeed don't feel welcome).
- A weak pound in the wake of Brexit deterring earners from abroad who don't want to be paid in sterling
What you might choose to do as a landlord
There is much evidence that 'so-so' looking property is not letting, so consider revamping your photos and marketing. Drive a better deal with the letting agent and make it plain you'll go elsewhere if it doesn't let. If your property is empty possibly you should consider using the opportunity and invest in refurbishment to bring your property up to slick contemporary standards. Consider including previous tenants' reviews in your advert. You may need to consider charging a lower rent. You may also wish to consider selling your property to invest your money elsewhere.
What you might choose to do as a tenant
Look around, dont be rushed and be prepared to offer a deal: in some cases the asking price may not be what it seems. If you are sharing, make sure you are negotiating a rent that reflects the current market: otherwise you could find it hard to attract new flatmates. You might also wish to request that some items (such as TV and broadband for example) are included in the rent.