Listing price: will I have to pay more to secure a rental property in London?

Listing price: will I have to pay more to secure a rental property?

There’s a common misconception among tenants who are new to the London rental market: the listing price is fixed. This figure is not set in stone, meaning potential tenants will enter a rental negotiation process that determines – among other things – the final price they will pay to rent the property.

Don’t worry, this doesn’t mean a bidding war is guaranteed. Before you prepare for a financial fight, you’ll be pleased to hear that London landlords typically accept the listed price – but some conditions stoke a competitive rental market, potentially forcing you to make an offer that exceeds this level.

Let’s explore three market conditions that have the biggest influence on the listing price – and the bidding process:

• Time of the year
• Property size
• Location of the property

Time of year

Listing prices in London blow hot and cold throughout the year due to seasonal variations. Rental demand and value typically peak during summer because school holidays make it a popular time to move. Consequently, landlords tend to raise their rental prices during this competitive period.

Conversely, tenancy rates tend to decline during winter, prompting landlords to reduce their prices. This seasonal lull creates opportunities for tenants who are willing to make long-term commitments or negotiate lower rent prices with landlords.

Property size

The size of a property, notably the number of bedrooms and bathrooms, is the obvious determining factor when it comes to the rental price. Understandably, larger properties in London will fetch higher rental prices than smaller properties. In terms of agreeing on a final rental price, you are likely to face stiffer competition for small properties amid greater demand.

Location

Properties in desirable London neighbourhoods with easy access to transport links, local schools, shopping centres, and public parks generally command higher rental prices. For example, school catchment areas often spark rental bidding wars between parents who are determined to live close enough to a top-ranked state school to secure a place for their child.

All roads lead to demand when it comes to the factors that influence rental negotiations. To sidestep a bidding war amid high demand be prepared to search during off-peak periods, offer on properties with a budget that is slightly over the average, or consider properties that are further from desirable amenities.

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A Simply London relocation package is tailored to remove the stress from your move to London – before, during and after. Inform us what aspects you need assistance with and let us take care of the rest, so you can concentrate on enjoying this life-enhancing experience. Our comprehensive services include: visas, home search, school search, settling-in and family orientation.  Contact us today to find out more.

Renting FAQs

• Are rental conditions negotiable? (i.e. rental prices & if I can have a pet) Yes, discuss with the agent and they will give you an idea if the landlord is flexible. Bear in mind that estate agents work for the property owners, not tenants, and if you try to negotiate rental prices they will always aim to get the best final price for their client.
• Can I rent in London if I don’t have a UK bank account? You do not need a UK bank account in order to rent – in fact, it is the contrary. In most cases, you need a rental tenancy, or let’s say permanent address, in order to open a bank account! Most tenantswill pay their first month of rent and security deposit from their existing bank account in their country of origin.
• Do rental leases always start on the first of the month? In London, and in the UK in general, leases can start on any day of the month. Generally, they start during the work week, but we have known leases to start on a Saturday, or even a bank holiday.
• Are furnished rental properties more expensive than unfurnished ones? Effectively, furnished properties are not systematically more expensive than unfurnished ones. Instead, the price of the property is determined, much like with unfurnished properties, by location, the number of bedrooms, and all other regular criteria.
• Should London tenants pay their rent on a weekly or monthly basis? Rent is payable each month, on the anniversary date of the tenancy agreement.

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Article published 8th January 2024