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Long-term Renting in London Is Now Getting Popular and Cheaper

The short-term letting market across London is now collapsing, and this situation has resulted in a lower rent situation. Now the average rent in London has gone down by around 4.2 percent in the month of July, by around twice as much in the central London area. As per the report, the rent is now £1,755 per month.

The condition was majorly driven by inner London, where cots feel around 8.4 percent every year. The massive collapse of London’s short-term letting market, which was once dominated by tourists using the online lettings website Airbnb, is now leading to a rise in long-term rental properties.

As per the market report, two in five homes which had been marketed as a short-term rental property are now advertised as long-term letting properties. Starting from May, around 12 percent of houses entered into the London rental market were earlier advertised as short-term lets. With this, the supply of rental homes has driven up by 25 percent in London, and in Central London, it is 42 percent. Throughout London, rents went down 4.2 percent, and in the Central London area, it is 8.4 percent.

Breaking down the rent costs

As per the market analysis data, the data of May, rooms in North Kensington had witnessed the largest fall in rents. The rents went down by 23 percent by around £763 per month. On the other hand, houses in High Holborn and Bloomsbury went down by around 19 percent, with £878 per month. The condition in North London was the same. As per the data, at that time, the cheapest area to get a house on rent in London was east London, with £682 of the average monthly rent.

The rental market condition is good for renters

While most of the landlords are shifting towards long-term rental policy, they are now sacrificing rental income for tenant security. Well, if you consider the average amount, there is around a 35 percent reduction in rent.

The rental drops can be good news for renters who are now dealing with eviction by their landlords. The Government has initiated some rules preventing landlords from evicting renters.

As per the data, South West London witnessed the largest increase in Rental as the average rents went up to 2.8 percent year-on-year in the month of July. On the other hand, in the Midlands, the rents went up to 2.3 percent.

A local tourism group, VisitBritain, was forecasted that in 2020 Britain would get 42 million visitors, but the revised forecast says 17 million, a 60 percent drop.

As per Hamptons International, 20 local authorities are now performing quite well with a long- term rental. The Vale of White Horse, located in Oxford Shire, is the first to appear on the list.

However, data shows that London will continue to be termed as the most expensive place to get a rental house. Here the average monthly cost is around £1,755 (in the capital city).

The lockdown has changed the landlords’ approach to short-term rentals, and they now prefer a long-term option. There are three-quarters of landlords who are now enjoying a long-term rental signing of around 12 months and more, and they would not return to the short-term option for now.

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