The collapse of the short-term letting market during COVID-19 lockdowns is leading to a glut of new long-term rental properties and in turn dramatically driving down prices.
Most of this is seen in London, where 40% of homes previously advertised as a short let are now being offered for long-term occupation.
The supply of rental properties across London has risen by 25% – 42% in central London – putting downward pressure on rents. Across all of London, rents fell over 4% year-on-year in July and by 8.4% in central London.
Hamptons International says landlords sacrificing rental income for tenant security means a 35% reduction in rent.