The firm analysed 13,000 rental enquiries from August and September across 1,100 London properties and compared this with data for the same period in 2019.
All but one of this year’s top ten most popular rental boroughs have changed position, and five boroughs that didn’t rank in the 2019 top ten at all now make the list.
At the top of the list, Hammersmith & Fulham has climbed ten places to the number one spot, whilst Richmond has fallen from third to 23rd. For full rankings table, see Note to editors.
Renters are considering completely new locations in wake of COVID
64% of enquiries analysed showed renters considering relocating to a completely different neighbourhood, with an average journey time of 44 minutes between their point of origin and the target destination. Falling overall demand for London properties and more supply than usual has led to rental values falling across the capital in recent months. This is opening previously out-of-reach locations to new renters and driving a reordering of the relative popularity of boroughs. Furthermore, COVID causing more people to work from home for the long term, means renters have more flexibility on where they want to live.
Suburbs see demand drop as white-collar workers leave London
The data reveals declining interest in some outer boroughs such as Richmond (-20 places). This is likely a consequence of white-collar workers leaving London altogether. The shift to working from home means professionals who might have previously considered leafy suburbs with great transport links, such as Richmond, are free to move even further away from the centre, where they can rent (or even buy) in picturesque home counties towns and villages for even greater savings and quality of life.
‘Premium’ central boroughs rise in popularity
Interest in properties in Kensington & Chelsea (+12 places) and Camden (+14 places) has recovered somewhat, following a difficult period in 2019. Home to a large population of EU nationals, the boroughs saw many leave following Brexit. This increased when the UK went into lockdown and many EU nationals chose to return home to their families. However, with COVID restrictions eased across Europe, EU nationals are returning and enquiries in these boroughs are now increasing. This, combined with a deluge of short-let properties flooding the residential market, and the absence of competition from international students with generous budgets, means renters now have more choice and many more affordable options in premium neighbourhoods.
Communities with strong local amenities rise in popularity
As people spend more time at home, interest has grown in neighbourhoods with more local amenities and a thriving local community. Places like Kensington & Chelsea (+12 places) and Shoreditch, which straddles Tower Hamlets (+ 10 places) and Hackney (+1 place), are attractive to renters who remain in the city thanks to their distinct communities and local independent shops and cafes.
Asaf Navot, CEO and founder of Home Made, says: “COVID is radically reshaping the London rental market, creating opportunities and challenges for landlords as they scramble to adapt. Whilst it remains to be seen how permanent these changes are, what matters now is managing the near term.
“For those landlords experiencing a fall in demand, my advice would be to protect yourself by acting fast. If you have renters already in your property, or viewings that have gone well, offer them a longer-term tenancy ahead of any further lockdown measures - local or national - that may be brought in. Landlords can also choose to prioritise long-term income over short-term gain by offering rent reductions for lengthier contracts, guaranteeing greater financial certainty for both landlords and renters.”
