Central London rental market - advice needed current status please

[Earlybird]

My 2 bed mansion block flat in zone 1 is currently rented to tenants, as we are living out of the country atm.

Given the current economic situation, would like to know what is happening in central London with regards to rental properties. Are rental prices going up/down, or holding steady? What is demand like at the moment? Lots of inventory or not much? Is it a landlord's market or a renter's market?

Any other thoughts much appreciated. Thank you!

From our experience they are going down as people are reluctant to sell and are renting instead, lots more properties on the market than a year ago. Friend rented her 3 bedroom flat in Kensington for £2k a week last year (GULP!) now getting offers at £1.2k
Good luck.

Depends on whom your flat rents to: those properties aimed at those in financial sector are sticking or being negotiated way down but if it is less high-end then it should be easier. We rent flats in zone 2 and it's not been a problem although our rents are very reasonable because we prefer to be able to pick and choose tenants. Definitely tenants' market but not as much as it is a buyers' market in sales iyswim.

My tenant does work in the financial sector lala, but it is an unusual agreement and the deal was privately done. He's a good tenant but I am also an exceptionally good landlord!

I certainly would like to keep him as a tenant, but also would like to negotiate a reasonable new rental rate consistent with market levels when the lease is up for renewal. Additionally, all utilities are included in the rental price and with the increases there it will be a little trickier to gauge how/if to increase his rent.

Any other thoughts?

Well, depends how long he has been there as to how much rent has risen/fallen since he moved in. Do you think rate is reasonable or were you surprised to get that level? I would probably ask if he wants to stay and not mention raise or discount and see what his reaction is. Sounds to me that he may be making enough savings on utilities to justify slightly higher rent iyswim. I think you have to know what level of rent you can take before it gets painful so allow him to make an offer first if he doesn't want to stay at current level. There are a lot of flats out there though and if he doesn't particularly love your flat he may be tempted to move on.

We agreed a price below market rate for the flat alone 18 months ago, and I pay utilities in addition because various things about the agreement suit me. So, he really is getting a good deal.

But without knowing what is going on in the market (and whether rents have increased/decreased recently), I don't know if it is as good a deal as it was. But certainly gas/electric costs paid by me have gone up significantly so he is getting a deal there.

I know he was prepared for an increase 6 months ago, and was expecting to pay one, but I (perhaps foolishly) kept the rent the same. Now, I'm wondering if I can/should increase it when we renew (assuming he wants to), and if so, by how much.

Do you let your tenants suggest what increase they are willing to pay, or do you present them with a number and wait for a reaction?

If the tenants are good I just tend to keep the rent the same. So far this has suited everyone and I have had a couple of sets of tenants stay for 2-3 years (I might have had to raise it after three years tbh). I wouldn't let the tenants set the rent but I would let them put in the first offer and work from there if you think it will definitely have to go down but if it had to go up I would make the first suggestion. Perhaps your tenant will realise how lucky he is and be prepared for an increase . In the end, it's all down to negotiation and I would prefer to have flats occupied at slightly lower rent then empty and not earning anything until new tenants could move in.