The latest rental market data from Chestertons shows that there were 39% more rental properties on the market in London in July 2023 compared to July 2022, while the number of new tenants entering the market decreased by 5%. This suggests that market conditions continue to improve for tenants in the capital.
With more properties to choose from and slightly less competition, tenants often now have the upper hand during price negotiations. As a result of this shift in power, 88% more landlords than this time last year were willing to reduce their asking rent in order to secure the right tenant for their property.
Areas of London that have been in particularly high demand with tenants in July include St. John’s Wood, South Kensington, Islington, Canary Wharf, Hampstead, Clapham and Fulham.
What does this mean for South London homeowners?
If you are a homeowner in South London, there are a few things you should keep in mind in light of the latest rental market data.
You may need to be more flexible on price. With more rental properties on the market and tenants having more choice, you may need to be willing to reduce your asking rent in order to attract tenants.
You should present your property in the best possible light. Make sure that your property is clean and well-maintained, and that the photos you use in your advertising are high quality.
You should be responsive to enquiries. Tenants expect a quick response from landlords when they enquire about a property. If you are not responsive, you may miss out on the best tenants.
Overall, the latest rental market data suggests that South London homeowners may need to be more flexible on price and presentation in order to attract tenants. However, the market is still relatively balanced, so there are still opportunities for homeowners to achieve good rental yields.
Here are some additional tips for South London homeowners who are looking to rent out their property:
- Target the right tenants. Consider the type of tenants who are most likely to be interested in your property. For example, if you have a family home, you may want to target families with young children.
- Use a reputable letting agent. A good letting agent can help you to market your property effectively and find the right tenants.
- Be prepared to offer incentives. In a competitive market, you may want to offer incentives to tenants, such as a rent-free period or a contribution towards moving costs.