London’s rental market saw a significant surge in activity last month, with estate agency Chestertons reporting a 30% increase in tenants moving into properties compared to February 2024.
The sharp rise in demand comes as renters look to secure homes ahead of the traditionally busy spring and summer periods.
According to Adam Jennings, Head of Lettings at Chestertons, many tenants are acting early to lock in rental prices that may appear favourable before potential increases later in the year.
He says: “We have seen a sharp increase in enquiries from tenants since the beginning of this year, driven by savvy renters looking to move ahead of the busy spring/summer market and lock in rents that are looking like good value.”
ASPIRING FIRST-TIME BUYERS
Another factor contributing to the heightened demand is the number of aspiring first-time buyers who have had to put their property purchases on hold.
With changes to stamp duty thresholds coming into effect next month, some buyers who were unable to complete transactions in time are instead remaining in the rental market, often committing to longer tenancy agreements of one or two years.
Chestertons anticipates that demand will continue to rise in the coming months as more tenants begin their search.
HIGHLY COMPETITIVE
Jennings adds: “Historically, spring is one of the busiest periods of the year for London’s rental market, and we expect the number of tenant enquiries to increase further.
“As a result, London’s rental market will remain highly competitive over the coming months.”
The latest figures reflect the continued strength of the capital’s rental sector, which has seen persistent demand despite affordability challenges.
Rising interest rates and stricter mortgage lending criteria have delayed homeownership for many, keeping pressure on rental stock.
With more tenants entering the market and supply constraints persisting, landlords are likely to remain in a strong position, while renters may face continued competition for desirable properties.
