Jump to content
House Price Crash Forum

Private rents in London plunge by up to 34% amid Covid crisis


Recommended Posts

More bear food. ūüźĽūüćŅ

Private rents in London plunge by up to 34% amid Covid crisis

Private rents in London have dropped for the second quarter in a row, with some areas posting sharp falls of up to 34% year on year, while other cities led by Edinburgh have also reported a decline during the pandemic.

Of the UK’s 50 largest towns and cities, Edinburgh had the biggest drop in rents, down 10%. Others including Telford, Glasgow, Gloucester and Ipswich fell 2%, while rents in Birmingham, Reading, Aberdeen, and Stoke-on-Trent slipped 1%.

Link to post
Share on other sites

its basically just aldgate high rise flats that went down 34% 

everywhere else about 10% down.

Of course rents are not as massively overpriced vs house prices in London (due to the exceptionally high PE for London real estate). 

Honestly most of it would be almost 50x P/E by now. 

Edited by hayder
Link to post
Share on other sites

 

 

The average monthly rent for a room in London fell to £725 between July and September, down 7% from £780 in the same period last year.

I think the headline can be a bit misleading but the article is accurate especially the above quote. I am just wondering if the effect of this is due to the Airbnb coming back on the market for long term rentals. Once the unemployment rate jumps I can see another decrease happening to rent prices.

You have to consider what effect not being able to evict tenants is also having. 

I plan on returning to London once my office reopens to initially rent a room whilst looking for a flat to buy so I'll be able to provide some anecdotal info on this later.

Link to post
Share on other sites

Basically that is result from one data source: Spareroom.

If you look at the postcode with the biggest drop (EC3) there are only 11 listings, not exactly going to take much for the figures to be volatile.

Let's be objective here, if you are going to find fault with the house price indices you also must find fault with this.

Don't dispute that rents have probably decreased overall by a much smaller margin.

Link to post
Share on other sites
 

 

I think the headline can be a bit misleading but the article is accurate especially the above quote. I am just wondering if the effect of this is due to the Airbnb coming back on the market for long term rentals. Once the unemployment rate jumps I can see another decrease happening to rent prices.

You have to consider what effect not being able to evict tenants is also having. 

I plan on returning to London once my office reopens to initially rent a room whilst looking for a flat to buy so I'll be able to provide some anecdotal info on this later.

That will be a lot of it - its spareroom not estate agents.

If you had a air ba nd b rented out to tourists, that would be my first port of call rather than looking for someone on an AST

Link to post
Share on other sites
 

More bear food. ūüźĽūüćŅ

Private rents in London plunge by up to 34% amid Covid crisis

Private rents in London have dropped for the second quarter in a row, with some areas posting sharp falls of up to 34% year on year, while other cities led by Edinburgh have also reported a decline during the pandemic.

Of the UK’s 50 largest towns and cities, Edinburgh had the biggest drop in rents, down 10%. Others including Telford, Glasgow, Gloucester and Ipswich fell 2%, while rents in Birmingham, Reading, Aberdeen, and Stoke-on-Trent slipped 1%.

But how is this possible? @spyguy said Reading it's the worst place in the world and totally overpriced compared to anywhere else. Despite the manic pace of construction of new flats rents fall 1%. Incredible. 

Link to post
Share on other sites
 

But how is this possible? @spyguy said Reading it's the worst place in the world and totally overpriced compared to anywhere else. Despite the manic pace of construction of new flats rents fall 1%. Incredible. 

London falls, Reading collapses. The relationship is that simple.

Building loads of flats does not make a firm/rising rentals.

 

Link to post
Share on other sites
 

Friend of ours just moved in zone 1 and is pretty much paying 20% less for the new place which they say is also nicer and bigger (not actually seen it myself so pinch of salt is perhaps due).

Just quit £1265pcm 1 double, 1 single bed flat in Wanstead, zone 4.  If we'd moved in the area instead, would have secured 2 double with garage for c. £1200 that would have been £1400 in Jan. So about 15% down like for like.

Rents in places like Wanstead, Buckhurst Hill, Wimbledon  Hempstead etc. are somewhat underpinned by ex Central London tenants moving out to leafy suburbs. 20% down in centre, or so so locations not that great for tube or overground sounds about right.

Link to post
Share on other sites

My flat was one of them! 20% drop.

Landlord owned 90+ flats in London. Was renting a 2 bed ex-council flat in Hoxton (refurbed, quiet and great location) for £2000. Three people; living room was converted to a bedroom. Me and my flatmates were hit with pay cuts in March due to covid. I called the agent asked for a temporary 15% reduction for 6 months. Landlord apparently says it's just not possible. One flatmate returned home due to covid and we the 2 remaining asked to stay, while not paying his share of rent, not allowed. We said we'd have to go, because 2 of us couldn't foot the £2000 per month. We put the room on Spareroom and in 2 months got ZERO enquiries (never happened before). We said, the rent must be too high, needs to come down. I promised the agent the rent would need to come down and he was deluded. The landlord offered to reduce only the rent on that room, making me and the other tenant effectively subsidise that bedroom so they could get someone in, I said no way. We threatened to leave, they said ok. The landlord pestered me offering £1800 per month, by this time my remaining flatmate was moving in with partner and I was too tired to scramble to find people to fill it, I said no, it's not cheap enough. In the last couple of weeks, it was marketed at £1600. We left. Landlord loses 20%.

Link to post
Share on other sites
 

My flat was one of them! 20% drop.

Landlord owned 90+ flats in London. Was renting a 2 bed ex-council flat in Hoxton (refurbed, quiet and great location) for £2000. Three people; living room was converted to a bedroom. Me and my flatmates were hit with pay cuts in March due to covid. I called the agent asked for a temporary 15% reduction for 6 months. Landlord apparently says it's just not possible. One flatmate returned home due to covid and we the 2 remaining asked to stay, while not paying his share of rent, not allowed. We said we'd have to go, because 2 of us couldn't foot the £2000 per month. We put the room on Spareroom and in 2 months got ZERO enquiries (never happened before). We said, the rent must be too high, needs to come down. I promised the agent the rent would need to come down and he was deluded. The landlord offered to reduce only the rent on that room, making me and the other tenant effectively subsidise that bedroom so they could get someone in, I said no way. We threatened to leave, they said ok. The landlord pestered me offering £1800 per month, by this time my remaining flatmate was moving in with partner and I was too tired to scramble to find people to fill it, I said no, it's not cheap enough. In the last couple of weeks, it was marketed at £1600. We left. Landlord loses 20%.

And has a void. And has to pay the agent a finders fee for a new tenant. 

Void, central London going into Christmas? he would be lucky to fill before then unless he competitively prices it.

Link to post
Share on other sites
 

And has a void. And has to pay the agent a finders fee for a new tenant. 

Void, central London going into Christmas? he would be lucky to fill before then unless he competitively prices it.

Sadly someone bit. It was filled a week after we left.

Elderly next-door neighbour was devastated to have us leave. I no longer live near my local coffee place where I had got to know the owner and a handful of customers. What little community I'd built in London for 3 years was just gone like that.

Link to post
Share on other sites

One benefit of buying where nobody chooses to live, apart from the lower rents, is that nobody wants to build or develop around you.......what you buy might not end up being what you get.......bought that space, that view, that quiet road.....hey ho you bought negative, expensive change.;)

Link to post
Share on other sites

I handed my notice in for a riverside flat in zone 2 in March; saw this all coming and moved out to the sticks. I don’t think I will ever go back to London seeing as we have all proven we can work from home just as effectively. Anyway, the flat was re-let almost immediately at 6% off what I was paying in May. I had not had a rise in rent since 2015 - asking prices had risen by about 15% in the time since - so in reality, it was re-let at an 18%-ish drop.

Link to post
Share on other sites
 

Sadly someone bit. It was filled a week after we left.

Elderly next-door neighbour was devastated to have us leave. I no longer live near my local coffee place where I had got to know the owner and a handful of customers. What little community I'd built in London for 3 years was just gone like that.

Well YOU decided to leave so have to take SOME repsonsibility for losing what little community you build up in 3 years? Unless I am mistaken? Besides after 3 years YOUR community was a coffee shop and some customers? PMSL This is not the 1990's with Friends on repeat is it? 

Link to post
Share on other sites
 

My rent in a very nice part of West London is down 25%, the landlord barely put up a fight when he saw all the local property at the new levels.

How far west are you? Rents definitely fallen in expensive parts of Zone 2

Link to post
Share on other sites
 

Sadly someone bit. It was filled a week after we left.

Elderly next-door neighbour was devastated to have us leave. I no longer live near my local coffee place where I had got to know the owner and a handful of customers. What little community I'd built in London for 3 years was just gone like that.

 I lived in Hoxton for a while late 90's, interesting demographic mix,from the chattering class Bohemians living 'under the radar' in their commercial units, to the 'roadman' gangbangers hanging around in the tower blocks.  Not a great deal of tension then and quite a lot of drug supply and consumption between all classes I remember.  An odd mix of extremes of wealth and poverty all within that N15 postcode.  

 

Link to post
Share on other sites

I can confirm having seen and actively looking for a 2 bed flat or house between NW London and NE London, the market has gone insane.

For the past 2 weeks there have been an unseasonal glut of properties on the market and going but here is my 2 pence worth observation:

For a combination of reasons, everything from ppl moving from zones 1-2 to 3-4 for bigger places and Landlords shitting it to prevent voids as they're employment and those of the tenants become jeopardized

Takes the budget of 1500.

You can get a 2 bed flat but whats this, here's a 2 bed house that is bigger for 1550 or 1600.

What's this? 1 street and 2 listings for essentially the same type of house. One at 1600 but another at 1450 that is bigger?

Etc etc

 

The market cannot find a standard esque price for many areas and this is throwing up mad anomalies depending on the type of landlord.

E.G - The amount of reductions I have seen has increased this past week for say 2-3 bed houses.

Places that would normally gor for 1750 are finding 1600 and places at 1400 are finding 1200 or 1250.

 

Truly interesting times. I await the spring when my contract is due for renewal to see what delights are in store.

Massive range of disparity for similiar houses and flats. Squeaky bum time has ensued.

, 

Link to post
Share on other sites
 

 I lived in Hoxton for a while late 90's, interesting demographic mix,from the chattering class Bohemians living 'under the radar' in their commercial units, to the 'roadman' gangbangers hanging around in the tower blocks.  Not a great deal of tension then and quite a lot of drug supply and consumption between all classes I remember.  An odd mix of extremes of wealth and poverty all within that N15 postcode.  

 

Are you Dan Ashcroft?

 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.