The rental market in Prime Central London has cooled slightly as summer begins but there is still strong demand for corporate lets.
Zoopla’s latest rental index shows that rents are highest in central London although rental inflation has slowed, rising by 3.7% down from over 13% compared to this time last year. The labour market is the primary driver of demand, alongside the need for student homes. The number of overseas students studying at London universities remains high and is adding to rental demand. The supply of homes for rent remains a third lower than the pre- pandemic period as low investment in rented homes keeps the overall stock of private rented homes flat. Stretched affordability will start to limit rental inflation in more local markets. Rightmove’s recent data shows that London advertised rents are now £2,652 per calendar month. A decrease of 15% in the number of tenants looking to move in London and an increase of 16% in available properties to rent in the capital means that London has seen the biggest overall improvement in supply and demand compared to this time last year.
