Will April 12th effect the London rental market?
The London rental market softened over the course of the pandemic. The exodus of London left a glut of supply due to demand dissipating. A lack of work and generally small living quarters with little outside space meant that renters had little to hold them in the city and headed home to the countryside, the continent or further afield.
As the lockdown ends and businesses open it is likely that demand will increase as more people return to London.
The oversupply of rental properties mean it will likely take a while for demand to catch up and therefore we predict around a lag before prices return to pre-pandemic levels.
When we do see renters return to the market we believe confidence will be low, both for renters and landlords. Therefore it is likely that there will be more short lets, holiday lets and licenses. This protects the renter from becoming stuck in contracts. The changes in how landlords can evict tenants mean that they will also likely prefer shorter renting terms.
In conclusion, I predict an uptake in demand after the 12th April with prices returning to pre-pandemic levels within the year. It is likely that shorter rental periods will become more prevalent especially at the lower end of the market.