London rental market - what’s happening right now?

[Londonrenter]

I’ve been viewing properties since the new year. They’re all mega bucks (it’s crazy) but none of the places I’ve seen have been let yet (I’ve seen 8 - most a little disappointing! But maybe it’s me and I’m subconsciously expecting better because of the price).

What’s going on? Does anyone know? I ask agents at every appointment and they tell me the market is busy but there isn’t enough stock.

But these places I’ve seen don’t seem to get taken (other agents send properties I’ve seen onto me without knowing I’ve seen etc etc)…

For example, I went to see something yesterday (for once not disappointing but v expensive), and the EA said “it’ll have offers over put on it by tomorrow morning. This place will be gone tomorrow”. She called this afternoon to ask what I thought and if I’d be putting in an offer. When I asked, she admitted it hadn’t actually had any offers on it yet - so much for “it’ll be gone over asking price by the morning”.

I wonder if the EAs don’t know what’s happening either?

Are things going to calm down? I am seriously thinking about quitting London (and the uk) because the market is so depressing!

Anyone?!

I don’t know about rentals but I’m seeing a lot of places for sale come on at last year’s prices and just … sit there.

I think there is an unspoken stand off at the moment between sellers who still hope for last year’s prices and buyers who aren’t willing to pay that as the market has changed, rates gone up etc . Eventually prices will go down but not there yet

Suspect the same may be happening between landlords and potential tenants… tenants cannot/will not pay what landlords are asking but landlords haven’t quite accepted that yet, maybe they need the higher rent to cover higher mortgage rate etc

I wonder if it is a standoff? Or maybe I was just seeing the dregs?!?

I do understand that landlords aren’t making a profit at the moment. But wow - the rents are eye watering. I do wonder who can afford them?

My sense from browsing the portals for zone 2 SE is that more flats are being listed and prices have stabilised, compared to Aug/Sept last year which was legitimately a frenzy.

Maybe because there are so many flats for sale in London right now, people who would previously have rented are finding it cheaper in the long run to buy a flat?

(Disclaimer, I have no actual clue)

Ah, have I just repeated what JimDixon was saying.

Thanks both! I can never tell if EAs are talking places up to frighten me into taking them (Ie: “this place will go tomorrow for over asking price”) or because they believe it. Maybe they don’t know what’s going on either?

If an EA says 'it will be gone tomorrow', they are bluffing. If an EA says: 'I have no spaces for viewings left and there is no waiting list', he is telling the truth and the property will be let tomorrow.

I mean, if he truly doesn't offer you a viewing or a place on a waiting list for potential further viewings.

That’s a really good point - and happened to me with one place I wanted to view. It looked beautiful, great street, and the price was completely reasonable! I couldn’t get a slot to see it: full on the day and full waiting list, and it disappeared off Rightmove almost immediately after (or probably went to “let agreed” as I don’t have that filter on). It’s the only time it’s happened so far. Maybe because it was finally a well-priced place?

If it’s really reasonably priced aka underpriced then most likely the landlord will accept a higher price from the most stable sounding tenants.

My own experience is extremely limited but when I had one property to let last Autumn I’d obviously put it too cheaply because I was deluged. Two people whose financials sounded shaky offered me 10% over which
made me realise it was achievable. Then a very solid couple offered me the same and I went with them. Offers of a year upfront were fairly common too.

I do think there’s a cap for maximum rent achievable in most areas, and the flats that I see sitting around on the portals look like ones where they’re trying to get well above that. But a tenant could live in a more central or better location for that price so there are no takers.

Having said that, you also never know when estate agents are just leaving listings up to maintain their own visibility and the properties aren’t even available. Though perhaps that doesn’t happen so much nowadays when there is such a glut of potential tenants; it’s not like the agents need to expend time getting them on their books.