London landlords will face a challenging rental property market once the pandemic subsides, it has been claimed.
Rentals platform SpareRoom.com says its research among renters in the capital reveals that 27% are waiting to move once Covid restrictions lift, and that half of them expect to leave London altogether, a majority of them planning to move to towns or villages outside the city.
SpareRoom says that London is therefore unlikely to ‘go back to normal’ as many companies continue to enable employees to work from home, removing the need for them to live within commuting distance of central offices.
The upshot of this is a projected 13% net exodus of renters from London, which is likely to significantly lower rents as supply begins to outstrip supply.
Looking at the wider market, SpareRoom says almost a quarter of 23-29 year olds left their rented accommodation during the pandemic to save money or after losing their jobs.
Many have chosen to move back into their family homes, and a third of 23-29 olds now live with their parents compared with 18% of thirty-somethings.
“We’re looking at a redrawing of the UK’s rental map in 2021 and London will be the biggest loser,” says Matt Hutchinson from SpareRoom (pictured).
“Whether it’s down to the catastrophic effects of COVID on tourism, hospitality and the arts, driven more by lifestyle factors like wanting outdoor space, or simply the realisation that many jobs can now be done from anywhere, London living is losing its appeal for many.
“We’ve already seen the effects on London rents, with averages falling consistently since spring.”