The amount of London landlords that cut the amount of rent they asked for in November was double that of a year ago, as the market shows signs of cooling with more properties becoming available as the effects of the pandemic begin to unwind, according to data from Chestertons.  

The estate agent says that 10% more rental properties came onto the market in November and the overall number of available rentals was 50% higher compared to November 2021 in the capital. However, it adds that rents in November were 50% higher than in October.  

It says that enquiries from new tenants were up 10% compared to November 2021, while the amount of completed viewings increased by 12% over the same period, in the aftermath of the health crisis. This resulted in 8% more tenants making offers on properties.  

The firm says: “Above average tenancy extension rates have been a feature of the market since Covid-19 and this has compounded the structural shortage of private rental housing in London by taking more rental homes out of the market for a longer period.”   

It points out that the number of tenants renewing existing leases in November jumped by 30%, on top of an 18% rise in October.   

High extension rates have been caused by the “highly competitive market conditions” in 2022 as well as reduced choice and rising rents.  

The agent says: “However, as these ‘long Covid-19 tenancies’ come around for renewal in 2023 and rental price growth cools, Chestertons expects more of these properties to be released back into the market which will help boost supply further this year.”  

Chestertons chief operating officer Richard Davies adds: “Covid-19 had a major impact on the natural cycle and operation of London’s rental market with lockdowns restricting tenants’ movements and their ability to move, artificially cutting supply and extending the average rental property’s time on the market which impacted on pricing.   

“The aftershocks of this unusual period are finally coming to an end and we believe that London’s rental market is now showing signs of stabilising, with more rental properties coming onto the market and an increasing number of landlords being realistic on the rent they are prepared to accept to minimise any void period.”  

Chestertons adds that the disruption caused by the pandemic to the supply of rental properties “is still ongoing and the number of available rental properties in London is still falling, albeit at an increasingly slower rate going into 2023”.   

However, it says that more properties are now becoming available and that affordability pressures are placing an effective cap on tenant’s budgets. This is helping to rebalance London’s rental market and reduce the pace of rental price growth.   

The agent forecasts rents will continue to grow by up to 5% over 2023, before plateauing in 2024.