Published: 30/03/2022 By Allan Fuller
Activity levels in any commodity will always fluctuate but the current dearth of rental property is unusual. In a normal market there is a reasonable amount of property of all types available. There are a variety of reasons for this. We are certainly finding that in many cases now existing tenants are wanting to stay in their properties when their leases are coming up for renewal.
Demand is coming from people returning to London who moved away during Covid restrictions, as well as couples getting together and moving in together.
Property is a classic example of the supply and demand economy at work and scarcity is creating an increase in rents, however this should be balanced against early last year when the grip of covid considerably reduced demand and rents were actually falling.
The UK economy is now looking more unstable with inflation at a high level and due to increase, as well as rising interest rates, there is every likelihood of the pressure on rents diminishing.
With other forms of investment producing poor returns we are seeing an increase of investors buying property to rent, also the is a surge of the build-to-rent market with large investment companies constructing large blocks of flats purely for rental.
Curiously, this is a return to the period before World War II when there were large developments of flats around Putney that were all rented, this included places such as Manor Fields, Exeter House, Highlands Heath and Wildcraft Manor. Sometimes the wheel turns full circle!