The London rental market has traditionally been a “landlord’s market” for decades.
What does it mean?
Well, it means that landlords are in a very strong position to negotiate tenancy conditions, whether rent levels, tenancy agreement durations, but also refuse special conditions – for example furnishings.
However, the combination of Brexit and a recent slowdown of the property sales market have had a visible impact on the rental market:
- London rents are currently stagnant or even down for the first time in years (this varies depending on areas and market sectors)
- Rental stock is up, whilst demand is down
- Less applicants post-Brexit
- New developments across the City
- Owners who can’t sell as sale prices are stagnant too and therefore decide to let their property in the meantime
- As a result, properties for rent stay longer in the market
These are good news for tenants who do not usually enjoy a position of strength in negotiations, or compete with a high number of other applicants for the same property.
It is therefore a good time to negotiate a tenancy renewal with favourable conditions, or a new tenancy, whether for corporate or individual tenants.
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