The news around shortages in the lettings market has been…intense. Many renters scouring Zoopla and Rightmove are frustrated by the slim pickings, but Foxtons have some useful resources for finding your next rental.
According to the Foxtons London Lettings Report, in January 2022 vs January 2021, there was a “94% increase in new renters per new instruction.” For every single property that was put on the market in January, 21 people registered their interest in renting. So no, you’re not imagining it, it’s tougher to find a place to rent in London right now.
Tips for Renters
When we asked Gareth Atkins, Foxtons Area Director for North & West London, how high demand is, he described a property in Pinner that had gone on the lettings market the previous day. Pinner is a quieter area on the outskirts of London with much lower demand than anywhere in central London. However, the same day this property went on the market, there were 16 viewings by the afternoon. So the day Gareth was meant to talk to us about demand, an experienced manager called him and said, “I’ve never had to do this, but how do I put eleven offers up to a landlord at once?”. Eleven offers on a property, the day after it goes on the market, in Pinner. That is unheard of.
So, our biggest tip is, if it ticks all your boxes, don’t wait. This shortage exists across the board – no matter what agent you’re viewing a property with, no matter if you have another viewing at 4pm – if you fall in love with a property at a viewing, go for it! After all, another offer may be agreed by 4pm.
Our other top tip is to refine your search: find what your requirements are, and where you can be flexible. If you could be a fly on the wall in our local offices, you’d hear this discussion come up with renters all the time. If someone loves exploring Central London but needs a cheaper option, they might actually benefit in moving from their £634 per week rental in Islington to a £435 per week rental in Surbiton or Twickenham (based on Foxtons average rental prices), where a train can get them to the well-connected Waterloo Station in 20 minutes. It's worthwhile to think outside the box (or neighbourhood).
We'll help you brainstorm
It's a Foxtons speciality: our offices are all connected, which helps renters think outside the box. We can see all properties that will suit our renters across the Capital, whether their dream flat is down the street or further down the tube line. There's a local Foxtons office on many high streets, but you're not going to be limited by that office’s search area. For the Pinner property we mentioned earlier, many of the viewings had come from our Harrow and Wembley offices.
Also, many of the Pinner viewings had come from registered renters. If you’ve called an agency lately about a property you saw on Rightmove or Zoopla, you might have heard it was already let. In Foxtons case, that’s typically because a registered renter has already scooped it up. When we get a new property in, we immediately tell our registered renters who are looking for that kind of property. So if you want to be the first to know and increase your chances, you’ve got to be on the list.
The reality of the lettings shortage
For the first three months of lockdown, renters did not move home unless they absolutely had to. So when we came out the other side, there was a built-up demand for lettings. What the market had was snapped up fast.
At the same time, buyers gained initiative from the government stamp duty incentive and lockdown restrictions. With this increased buyer activity, sellers became more confident, so many properties that people had been letting for the last 4-5 years were sold. Great news for sales, but those properties might have boosted the diminishing lettings stock.
In 2021, the corporate and student markets picked back up in London. Companies that had kept employees working from home, and put off relocating and hiring, resumed these vital parts of their businesses. September 2021 saw the first intake of students in almost two years – Brunel, UCL, Kings College, etc. had students resuming in-class studies from around the UK and around the world. The North and West areas of London saw a sweeping demand as corporate and student rentals spiked, more than doubling from January 2021 to January 2022 (Foxtons London Lettings Report, January 2022).
Life is picking back up in London, so demand isn’t likely to fade soon. The agents in our local offices see, first hand, the competition that London’s renters face, but we’ve got some methods to get you in. Consider registering with us to get in early, and try expanding your search parameters. It might take extra work and creativity to find your next rental, but get in contact and we'll give you a hand. Remember, if you like the property you’re viewing, don’t wait around, go for it before it’s too late!
