London estate agency Chestertons revealed a 22% drop in the number of tenants renewing their existing rental agreements in October compared to September as more renters are deciding to shop around for a better deal or buy their first home.
Adam Jennings, head of lettings at Chestertons, says: “Over the past few years, London rents have been driven to all-time highs by an increasing number of tenants unable to buy due to high property prices in London and high mortgage rates.
"Now that interest rates have fallen and changes to Stamp Duty are looming, aspiring homeowners feel more motivated to take their first step on the property ladder. As a result, London’s rental market is rebalancing and providing more favourable conditions for remaining renters.”
Chestertons’ data shows that there were 9% more rental properties available in October than in September. At the same time, the number of landlords willing to reduce their asking rent grew by 25%.
Jennings concludes: “Some tenants are viewing this as a rare window of opportunity to find a more affordable property in their desired area and when they find it, they are signing longer tenancy agreements to lock in the lower rent. Most tenants that moved in October signed deals to stay in the property for more than two years."
