Is anyone trying to rent out their London house at the moment? How are you finding the market?

[cyclingtowardsbethlehem]

We're trying to rent our house due to a work move overseas for a few years. We're in SE London and it's a spacious 3 bed terrace on a lovely street near lots of big parks and transport. Good primary schools. Rapidly gentrifying, craft beer, sourdough etc, all that stuff people like. We've had hardly any interest- a couple of viewings. Good feedback from them- liked the house, very homely etc

I think the EA has priced it a couple of hundred quid too high a month. They will be fully managing it so obviously want to push for higher rent. We're happy for it to be lower- the arrangement just has to wash its face, we're not looking to make a profit. But there is so little on the market it is hard to tell! A couple of houses in a worse neighbouring area on for more and that's it.

We are supposed to be discussing strategies with the agent today and I wondered if this was an overall feature of the rental market at the moment or if there is something else we should be doing. Surely people just make a lower offer anyway if they like it?

I think an issue may be lots of renters have only experienced a market against their favour & more traditional profit driven BTL landlords so going in with a lower offer wouldn't occur to them. If you think its too high in price insist the agent lowers.

I know a few friends who have had their pick of locations/prices/properties in the rental market recently but younger professionals looking at flats so not sure how that compares to a nice family home market.

I keep reading landlords are exiting the market & there is less supply due to increased taxes, regulations & renter protection (all badly needed imo). Not seeing the shortage reflected in my area of SW London & reductions common as are properties hanging around longer unlet. I wonder if the exedous of people is higher than official estimates?

The rental market in London had been widely reported to be down 10% to 20% in more central area where no one needs to live right now. The majority of the rental market is likely to be flats so it doesn’t mean it translate directly into what you will get but the direction is pretty clear, a renter will have plenty of choice and bargaining power at the moment.

...in London, where the op is but which isn't the whole country. None of the reasons to live in London are there at the moment. Outside the holy city there is a rental property shortage. Inside you need to drop your price drastically.

I wish I were back in London! Where I am it is just awful, has been for months. I can afford a three bed house, but am going to have to crash at a friend's place when my tenancy expires, because there is literally nothing. I have never known rental market like it.

In terms of offers below - on the tenants' side of this issue, letting agents make it seem very unlikely that there is a point in doing so. What they say to you is going to be different to what they say to us!

Also, are you offering 6 months initial period? Some agents here are doing one year only, which can be hard for some people to accept.

Maybe we should get a friend to approach them to see what they say. One of the viewings actually asked us to sell it to them so they must have liked it! I was wondering if the stamp duty extension might make people hold out to buy if that's what they want.

We're happy to drop so I will suggest that of course. @biarritzcrackers the agent has advertised it as a long let as they said that appeals to a family market but perhaps it's putting people off with current uncertainty on long term job location? Also noticed they haven't marked the ad up as pet friendly, which it is.

We're not exactly central but not really the burbs either. There is a garden. It's just taken some friends 6 months to get their flat let (but no garden, more central) so I guess that's an indication.

When I was renting it would never have occurred to me to view a property and make a lower offer. If you’re up for that then you need to let the agent know to ring around people in the next price bracket down and advise

Can you give us the link so we can see?

I’m a landlord and I’ve dropped my rent as my tenants are good and struggled a bit last year

My niece is a student going into her second year and has found nothing her and her friends can afford in Camberwell so I dont know where all the bargain flats in London are. It’s outrageous £2800 for a damp flat above a shop.

The London rental market has crashed spectacularly since Covid struck.

To put it in perspective. When i first moved to London in 2005, my flat in zone 1 was £1800 a month for a 1 bedroom. When I last looked in November, the same area, you could get a 2/3 bed flat for £1500.

According to Rightmove, there is 55, 402 properties to let right now. Ok, that's everything from bedsits to million pound mansions....but still...

I'm in the South East coast currently and the market here has skyrocketed. There's 3 bedroom houses on for £3000+ (not student lets). It's ridiculous. But everyone and their granny seems to want to be at the beach right now. And "work from home" means it's finally possible for those who were stuck in tiny apartments in London.

Tell you EA you are reducing. If they don't like it, move to another.

Thanks for the advice all. We'll be firm with the agent. I'm not going to post the link as I don't want it associated with my username- should have name changed!

Definitely say you will allow pets.
People do make offers on rentals, that's quite normal.
I'm looking for a place near where I live after I sell my house- I don't want to pay London prices for the two month interval (plus my son will stay take over the lease here). But it's a desert.
Price it right and you'll get it let.

Lower the price...we let out a few properties...no mortgages to pay...we do lower rent and long contracts and people stay for years....certain areas will always be pricey...Camberwell was mentioned above...doubt that has gone down...i dont like the area but its near brixton and has the art school etc.

From experience, letting agents who are going to be getting their 10% management fee, will tend to price on the high side - same as they urge LLs to whack the rent up every year.

Have you done your own research on rental prices in the area? That’s your best guide, plus of course how many similar (or not) there are to choose from, and how long they’ve been sitting there. Zoopla’s ‘most reduced’ filter can be very helpful.
But unless there’s some innate disadvantage you can’t do anything about (e.g. next door to a smelly takeaway), if you’ve had little interest I would guess it’s probably the price.

@murbblurb

...in London, where the op is but which isn't the whole country. None of the reasons to live in London are there at the moment. Outside the holy city there is a rental property shortage. Inside you need to drop your price drastically.

I dont think there is a rental property shortage in Reading. At least, I dont think it did at the beginning of this year.May not be to everyone's taste to live there though.

I have a relative in SE London and last September I helped her search for a 3 bedroom house and there were very few on the market, whereas normally there several pages on Rightmove.

She did find a lovely house but refused to view any being dealt with by a local agent (F...) as she distrusted them completely.

The house she rented was above her price range but was open to offers when the landlord discussed it.

There aren’t many out there at the moment so it could be the wrong price.