The obvious place to look is the slowly lifting Covid restrictions which is bringing back confidence in the population to emerge from their homes and search for something better suited to their post lockdown life.
What they will find is a more affordable London with the Zoopla Rental Market Report showing that rental prices in greater London have dropped 9.4% over the last year with the central being hit the hardest and outer areas limiting the damage to 3%.
In that same period it has moved the Zoopla affordability index for London from 47% to 42% thanks to the price drop brought on by 22% of tenants leaving the capital. Through these lower prices the appeal of being back in the big city seems to be dragging the tenants onto the platforms to search and very likely into cheaper accommodation at the same quality they previously had.
Tim Bannister, Rightmove's Director of Property Data said: “Landlords who five years ago took a longer-term view obviously couldn't foresee the effect that covid would have on rents, and right now they'll be doing all they can to prevent voids and hope the drop in rents is fleeting.”
So while it is most welcome for landlords getting 0 for their properties to have tenants again it does come at the cost of reduction from pre covid and Brexit profit levels, putting tenants in a better position in contracting homes in 2021.
Written by Toby Dawson
