Lettings

Demand for rental homes in London 'remains high and I do not see a great glut of stock on the horizon,' says Sarah Tonkinson of Foxtons.

The latest RICS data on residential property deals, demand, new instructions and prices all point to a continued market slowdown.

Savills expects prime London rental growth to calm from its double-digit run to +5.0% over 2023 and +3.0% by the end of 2024. The prime commuter belt is set for an even sharper slowdown.

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'2022 has been a record-breaking year for rental growth,' says Hamptons. 'But even so, rents have failed to keep pace with wider inflation, and indeed landlords’ rising costs.'

...but prices and stock levels both fell in the final quarter, reports JLL.

'The UK's private rental market is going through a period of rationalisation and consolidation after more than a decade of very rapid growth up until 2016,' says Richard Donnell.

'Even if prices do fall this year, it’s likely that over 90% of sellers will still sell at a profit,' says Hamptons' research chief.

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Rental supply and demand remain very mismatched in the capital - but Knight Frank suggests that 'the UK property market may finally begin the process of self-correction' later this year.

A 'widespread repricing' is underway as home-buyer demand falls away, reports buying agency.

Searches for homes for sale in London increased by 9% from 2021 to 2022, says Rightmove, while searches for Cornwall and Devon dropped by 18% and 17% respectively.