London Tenants having to Downsize!

London Rental Flats

We have long been reporting of the dramatic rise in rents, especially in stock strapped London. Property consultants Cluttons are seeing this dramatically affecting the rental market as “rising rents are forcing tenants to search for smaller properties, creating fierce competition for one-bedroom flats”.

So, sadly for Londoners who normally prefer a bedroom and an office, many are having to give up this luxury extra space to try and keep rents and overall outgoings down.

According to Lynn Hilton, partner for residential lettings at property consultants Cluttons, said:

"The combination of a difficult mortgage market, rising rents and general economic uncertainty has put significant pressure on the lower end of the prime London lettings market. Previously one-bedroom properties were often seen as pied-à-terres or short-term homes, but the market has shifted so that single professionals and couples, who would have previously chosen a two-bed, now see the spare room as an unnecessary luxury”.

"Young professionals arriving in London to take up positions in the City have noticeably lower budgets. They used to take two-bedroom apartments at £550 per week, but now one-bedroom properties costing in the region of £350-£400 per week are in much greater demand."

From a rental perspective this is good news for property investors and anyone trying to move up the ladder but doesn’t want to sell yet. However for tenants, it may well mean they need to look further afield to find their rental property. Perhaps in the future it won’t just be just home owning that will be tough to afford in London, but even the rental community will be forced out to the home counties and even, dare we say it, ‘up north’ to more cost effective areas such as Peterborough and Stevenage.

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