Landlords in London are moving previously short-let properties onto the long-term rental market, according to a study from Hamptons.
The lettings agent says 37 per cent of homes coming onto the rental market in the capital since May had previously been short-term lets, while the number of homes available to rent in central London is up 42 per cent on the same time last year.
Of the 20 local authorities which saw the highest proportion of short lets being offered on the long-term rental market, 16 are in the capital. The Vale of White Horse in Oxfordshire is the first local authority outside the capital to appear on the list, with 3.6 per cent of its instructions previously listed as a short let.
In July the average cost of a newly let property in Great Britain fell to £1,001 pcm, 0.1 per cent lower than the same month last year.
Rents in London fell 4.2 per cent year-on-year in July, sparked by a record rent fall of 8.4 per cent in Inner London.
Top 20 areas with the highest share of short-lets
| Top 20 | Region | May-July instructions which had been short lets |
| Lambeth | London | 17.2% |
| Hammersmith and Fulham | London | 14.5% |
| Kensington and Chelsea | London | 12.9% |
| Westminster | London | 11.1% |
| Ealing | London | 9.5% |
| Wandsworth | London | 6.7% |
| Merton | London | 5.6% |
| Camden | London | 5.6% |
| Islington | London | 5.2% |
| Newham | London | 4.5% |
| Hounslow | London | 4.0% |
| Hackney | London | 3.9% |
| Vale of White Horse | South East | 3.6% |
| Southwark | London | 3.6% |
| Oxford | South East | 3.4% |
| North Ayrshire | Scotland | 3.3% |
| Kingston upon Thames | London | 3.2% |
| Richmond upon Thames | London | 3.2% |
| Greenwich | London | 3.1% |
| Richmondshire | Yorkshire & the Humber | 2.9% |
Source: Hamptons International
Hamptons head of research Aneisha Beveridge says: “For years there had been a steady stream of landlords moving from the long to the short let market in search of higher returns. However, following lockdown and in the two months since late May, this shift has been completely reversed with growing numbers of landlords looking to secure longer-term tenants.
“This is particularly evident in urban tourist and corporate relocation hotspots, nowhere more so than central London. And with three-quarters of landlords who have secured a long-term tenant signing 12 month or longer contracts, they are unlikely to return to the short let market any time soon. However, the rising popularity of staycations has meant that rural and coastal areas have kept the short-let market outside of urban areas more buoyant.
“The gap between what’s happening in the rental market in Inner London compared with the rest of the country has widened. While affordability pressures weigh on rental markets across the country, the lack of stock available is softening the blow.
“Across Great Britain there were 7 per cent fewer homes available to rent last month compared with the same period last year. However, the opposite is true in Inner London, where the increase in the number of short lets moving to the long-term rental market drove a 42 per cent annual increase in stock levels and consequently lead to a record -8.4 per cent fall in rents.”
