You don’t need us to tell you the UK rental market, and the rental scene in North London, is moving quickly. After a prolonged period of significant increases, recent data suggests a welcome cooling in rental prices, offering a fresh perspective for both landlords and tenants. At David Harris & Co, we are keen to explore how these changes affect the North London rental market and how we can assist our clients during this time.
The HomeLet Rental Index, which gathers tenant referencing data from over a million renters annually, indicates a consecutive three-month decline in rental prices across the UK. January witnessed a 0.6% decrease in average rents, continuing from a 0.9% fall in December. Since October, the average monthly rent has reduced from £1,283 to £1,260. This trend marks a significant departure from the 32% increase in rents observed from October 2020 to 2023, where average rents surged from £974 to £1,283.
Interestingly, this cooling phase is not uniform across the UK. While the East Midlands, West Midlands, and the South West did not follow this trend, London's rental market, particularly, appears to be leading the charge in this cooling process. Data from Hamptons shows that the annual rental growth in the capital has more than halved from 17.1% in August to 8.1% in January, the slowest in two years. Specifically, the average monthly rent in Greater London has seen a more than £100 reduction, from £2,192 in October to £2,081 in January, a 5% decrease.
This shift can be attributed to an increase in available rental properties in the capital. According to one source in the rental market, there is a 41% increase in the number of rental properties available in London compared to January 2023. This increased availability has provided tenants with more options and alleviated the pressure to make swift rental decisions.
Despite this seemingly positive trend for renters, experts at HomeLet caution against interpreting this as the start of a continuous decline in rental costs. Predictions suggest a potential rise in rental prices by 5-10% by January 2025. This forecast highlights the importance of strategic planning for both landlords and tenants in navigating the rental market.
For landlords in North London, this market condition presents an opportune moment to reassess rental strategies and property offerings. Ensuring properties meet the evolving preferences of renters can help maintain occupancy rates even as the market adjusts. For tenants, the current environment offers a chance to secure rentals at more competitive rates, though with an eye on the future and potential price adjustments.
At David Harris & Co, we are committed to providing our clients with the most current market insights and tailored advice. Whether you are a landlord seeking to optimise your property portfolio or a tenant searching for your next home, our team is here to guide you through the changing dynamics of the North London rental market. Our expertise and local knowledge position us uniquely to help you make informed decisions, ensuring your rental experience is both rewarding and forward-thinking.
We have assisted many Finchley homeowners and landlords looking to let their property, and we know what tenants are looking for when searching for rental accommodation. You can take the stress out of connecting with likely tenants by turning to a local letting agent in Finchley.
If you want to make an informed decision in and around Finchley’s lettings market, we are here for you. If you have any questions about the local rental market, or you need assistance, please contact David Harris & Co today. Call us on 0208 346 9122.
