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.

However, outside London and the Home Counties, rents continued to rise.

The rise of short-term lets including those on Airbnb has been fuelled by incoming tourists. VisitBritain forecast 42 million visitors to Britain in 2020 but this has been revised down 60% to 17 million.