We are seeing early signs of stability in London’s lettings market in February, with tenancy renewals and new landlord instructions both rising. Limited supply continues to support rental values across the capital.
Tenancy renewals at Chestertons increased by 16.2% month-on-month, reflecting that many tenants are choosing to stay in their current homes. Positive experiences and our service are helping to reinforce their decisions, showing confidence in the lettings market.
New landlord instructions also rose 2.8% year-on-year, demonstrating continued confidence in London’s lettings market. Meanwhile, the overall number of rental properties declined 5.4% year-on-year, keeping supply tight and supporting rental values.
These trends are mirrored in the latest Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey. The survey shows that 28% more lettings agents now expect rents to rise over the next three months, up from 16% in the previous survey.
‘’London’s rental market continues to demonstrate resilience. The notable increase in tenancy renewals shows that many tenants are choosing to stay in their current homes, while the rise in new instructions highlights that landlords continue to recognise the strong long-term fundamentals of the capital’s lettings market. With supply remaining constrained across much of London, we expect rental values to stay well supported in the coming months.’’ Adam Jennings, Head of Residential