LET
SOLD
Record demand, combined with legislative
squeezes on landlords, is placing increased
pressure on supply.
Rise in renewals
Increased competition and rising rents
are encouraging renters to renew
tenancies rather than brave the open
market. Between January and May 2022,
Foxtons saw a 7.5% increase in renewals
compared to the same period in 2021.
Longer tenancies
Rising rents may also be influencing the
length of tenancies signed. Renters who
renew are agreeing longer tenancies:
13.6 months in 2022, up from 9.5 months
in 2021.
Return to short lets
Demand for holiday and short-let
accommodation dried up during the
pandemic, forcing these properties onto
the long-let market. Supply is returning to
the short lets market. As leases come to
an end, we expect this trend to continue.
Exiting landlords
It has been suggested that landlords are
taking advantage of the current situation.
In reality, rents are adjusting back to
pre-pandemic levels, with an allowance
for inflation. Rising sales prices and
mounting legislation are impacting
financial viability and some landlords are
leaving the sector, further reducing supply.
The English Private Landlord Survey reports
that 22% of landlords in 2021 were
planning to either reduce or completely
sell off their portfolios. In the last 12 months,
30% of Foxtons London sales were
landlords selling previously rented homes.
DEMAND
19.8%H1 2022 VS H1 2021
-22.1%H1 2022 VS H1 2021
SUPPLY
SUPPLY
London Lettings Report Summer 2022 | Extraordinary times 3
LONGER
TENANCY
RENEWALS
RENEWAL
RENT RISES
RENTS
RISE
RETURN TO
SHORT LETS
STRONG SALES
MARKET
RENTERS
PAY
£123
EXTRA PER WEEK
on average, compared to a year ago 13.6 MONTHS 8.5% HIGHER
DRIVEN TO
LONG LETS BY
PANDEMIC
NOW RETURNING
TO SHORT LETS
25% HIGHER
H1 2022 VS H1 2021
7-YEAR HIGH
IN RENTERS MOVING
FROM OWNER
OCCUPATION
8
12
4
14
6
10
0
2
2019 2020 2021 2022
to
date
AVERAGE LENGTH OF RENEWALS (MONTHS)
Foxtons
Foxtons
Foxtons
Foxtons
Foxtons
DRMA
Foxtons
Foxtons