Viewing figures for rental properties in the London and Home Counties’ hit a ten-year high at the end of August, according to figures from Knight Frank.
The estate agency says that part of the reason for the increase is the later-than-usual surge in interest from students as their study and accommodation decisions have been delayed by Covid.
Head of residential research Tom Bill says: “Students account for almost a quarter of the market and uncertainty around the start of the new academic year meant July was quieter than normal.
“Some students held out until late August before deciding what to do, with many universities providing the option of online learning until Christmas.
“It is also true that London will remain an attractive destination for overseas students irrespective of how long it takes for universities to return to more normal conditions.
“Demand is strong in the capital due to cultural as well as academic reasons and many students have worked for years with the specific aim of a place at a London university.”
Meanwhile, beyond the student rental market, tenants have been taking advantage of falling rents, with many seeking more outdoor space.
Knight Frank says weaker rental values are the result of a strong supply of properties as owners opted not to sell during the pandemic.
This has been exacerbated by the addition onto the market of many short-term lets.
In the 12 months to July, average rental values in prime central London declined by 5.8 per cent, while in prime outer London the decrease was 5.4 per cent.
In both cases, it was the largest annual decline registered since the global financial crisis in 2009.
In such a tenant’s market, more viewings are typically undertaken before a let is agreed, which will also have helped push the figure to a ten-year high.
However, the number of tenancies started in the same week suggests it is not just viewings that are on the rise.
For most of the summer, the number of new tenancies was around a third below the level seen last year.
In the week ending 22 August, the figure was 17 per cent higher, suggesting downward pressure on rental values may start to ease.
