London rents set to rise almost 20% - Khan

Newnoel

Average London rents could reach £30k a year by 2025 warns Mayor | Evening Standard

Good news on rental returns for investors like myself, who have seen a very soft sales market over the past 3 or 4 years.

hazyjo

Wonder if he can predict me next week's lottery number too lol.

Supply and demand. Same goes for buying. And why the expectation to live there as a key worker? Most people I know commute!

Cakeguts

It doesn't really mean anything.  Some rents are very, very high in London but they are let to either very wealthy people or people working for very wealthy companies.  Because it is an average it doesn't mean that ordinary people will be paying these high rents.  The whole thing is a just a sort of political statement to get to people's emotions.

lisyloo

This just doesn't sound right to me.
I've recently moved out of London.
The flat I rented dropped about 20%

Not everyone is going back full time and some people not at all.
we were renting there as our commute was too far every day, but people will be prepared to live further out if they only have to go in 1 or 2 days a week.
Further more some jobs have gone fully remote.

I just don't see it.
I had to check the date as it looks like something pre-pandemic.
I haven't spent a lot of time on it but anyone else reckon it's speculative journalism?

GaleSF63

hazyjo said:

Wonder if he can predict me next week's lottery number too lol.

Probably with the same accuracy, yes.

alt80

Not a London based investor but possibly a return to city living/ office working post Covid driving a potential for a greater demand for rentals. I’ve found it very easy to let a couple of close to city centre flats I’ve got in my portfolio recently for very good rents. - wouldn’t have been so easy last year. Had a bit of a difficult time finding tenants quickly last year for a few I’m managing.

[Deleted User]

I doubt it, people can hardly afford to pay the rents now. Do you think they are just going to grow some money on trees? The system will collapse if they went that high. 

Companies are planning to move out too. Why pay all these London wages when the work can be done cheaply else where? What we are seeing at the moment is the world trying to back to normal, but the goal posts have been shifted and it won’t take long for people to adopt the new normal. Another year or two, very different city.

And let’s not forget the cities are going back towards the past, wealthy people are leaving. Less tax, more run down. 70s New York all over again.

musehead

In Balham-Tooting Bec (zone 3), rents are around the same as they were 10 years ago, for 2 bed flats on the cheaper end of the market at least. Around £1500 to £1600 per month. In real terms, after a rise of 20% they'd still be comparable, perhaps even cheaper than they were 10 years ago.

london21

In London, I thought rents were the same or going down due to people moving outside London due to lots of people working from home. 

[Deleted User]

london21 said:

In London, I thought rents were the same or going down due to people moving outside London due to lots of people working from home. 

I heard from people that rents were going down, in one particular case a guy rented a flat in a block, and moved down two floors because the rent was £600 cheaper each month. Hear say I can’t say I have much experience.

Newnoel

musehead said:

In Balham-Tooting Bec (zone 3), rents are around the same as they were 10 years ago, for 2 bed flats on the cheaper end of the market at least. Around £1500 to £1600 per month. In real terms, after a rise of 20% they'd still be comparable, perhaps even cheaper than they were 10 years ago.

I have one BTL in Clapham Junction, which isnt too far away from the Gateway to the South

I first started renting it out in 2011 at £1,410 pcm, and now getting £2k. During that time, I did get it repainted once, but no real investment other than that. Not sure what inflation has been over the past 10 years, but I am happy with that return, particularly as the mortgage repayments have dramatically reduced during that time.