Tenant demand increased in August as growing numbers of landlords brought properties to London’s rental market three months after the Renters’ Rights Act took effect.
Enquiries from prospective tenants increased by 13% year-on-year, according to the latest monthly analysis from London property specialist Chestertons.
The figures mark a clear increase in tenant activity. Year-on-year enquiries had fallen during each of the five months leading up to the introduction of the Act on 1 May, before rising by 17% in May and 10% in June. After slipping to -7% in July, demand rose sharply again in August.
Meanwhile, new landlord instructions increased by around 6% year-on-year, demonstrating that confidence is returning as the sector adapts to the new rules.
The Act prevents landlords and agents from inviting, encouraging or accepting offers above the advertised rent. Some landlords had tested higher asking rents ahead of its introduction, contributing to the temporary slowdown in tenant activity during July.
Katinka Hill, Head of Lettings at Chestertons, said: “As the report states, August brought an increase in activity across London's rental market, which doesn't surprise me and is in line with usual seasonal trends. We also expect this momentum to continue into September now that schools have returned and people are back from holiday.
“Achieved rental prices are holding firm, which is a very positive sign. A notable trend we've seen since the Renters' Rights Act took effect on 1 May is that tenants are taking longer to make decisions, weighing up their options more carefully. This is because they have increased flexibility to move, more choice and there are plenty of quality homes to choose from.’’