Is now a good time to start out as a landlord in London or to expand an existing portfolio?
In this edition of the London Lettings report, we examine the fundamentals of the Private
Rented Sector (PRS): the opportunities in the market today for higher yields; how
regulation is providing an impetus for landlords to become more professional; and the
value of modern property management through a team of experts.
DEMAND NOW AND IN THE FUTURE
The Private Rented Sector currently provides homes for 27%* of Londoners, potentially
increasing to 40% by 2030**. Thousands of people each year are looking for rental homes;
in 2021 we saw a 57% increase in the number of lettings applicants versus 2020.
Although the Build to Rent sector is growing - there are currently 30,000 units in London,
as we identified in our Q3 report - the benefits of this sector will not be relevant to all
renters. The role of a more professional PRS sector is key to fulfilling London's rental needs.
LOOKING TO THE PAST
During times of change, it's natural to be hesitant when making investment decisions.
However, our historical data shows that times like these present property investors with
opportunities. In this report, we will explore the data to understand where the next
high-yield rental investment opportunities could be and how you can maximise your
returns with professional property management.
* English Housing Survey 2020/21
**Future of London
THRIVING:
LONDON'S PRIVATE
RENTED SECTOR
ED PHILLIPS
CHIEF SALES
OFFICER - LETTINGS
57%
92%
40%
INCREASE IN
FOXTONS RENTER
APPLICATIONS
OF FOXTONS LETS ARE
TRADITIONAL PRS
PERCENTAGE
OF LONDONERS
EXPECTED TO LIVE
IN THE PRIVATE RENTED
SECTOR BY 2030
London Lettings Report Winter 2022 | Introduction 1
2021 versus 2020
Foxtons
Foxtons
Future of London