The number of homes to rent in London is rising, data shows, as would-be sellers opt to let owed in part to uncertainty in the sales market.
Knight Frank today said the story of low supply in London’s letting market was ‘coming to an end.’
Recent uncertainty in the sales market has seen more people letting their property after failing to achieve asking price.
The combined number of letting listings in prime central London (PCL) and prime outer London (POL) in June was the second highest level since September 2021, the latest data has revealed.
Meanwhile, the number of new prospective tenants registering for letting in London in June was 31% above the five-year average in May. Gross yields reached 3.99% in prime central London (PCL)- the highest figure since 2009.
Annual rental value growth in PCL fell to 14.4% in June, the lowest since October, indicating that the imbalance between supply and demand was becoming less pronounced.
In prime outer London (POL), annual rental value stood at 12%.
However, rising supply is not universal across the capital, with areas like Notting Hill and Kensington still experiencing high demand and low supply.
“The preference for many owners is still to sell,” said Gary Hall, head of lettings at Knight Frank. “But more are open to the rental option given the recent wobbles in the sales market. Tenant demand is strong and yields are very healthy, which adds to the appeal.”
