We Can’t Pay More! Affordability crisis dents Londo...

London’s rental market has weakened in recent months according to the fledgling online service Hello Neighbour.

Rents are 1% down compared to the previous three months, with an average rental in May of £2,155.

Service chief executive Richard Jenkins says: “We have seen 52 viewing requests per property in May, down from 62 in April, following a similar trend from last year of a quieter May before the summer months.

“However, there are 16% fewer requests in May 2024 compared to May 2023.

“We have seen year-on-year growth at its lowest level compared to the previous 12 months, with an increase of only 1% in May.”

There’s also been a thumping 32% drop in the number of landlords pricing above market rates in the last 12 months.

Jenkins goes on: “We continue to see higher demand for outer London properties in May, with 84 viewing requests compared to 69 for Inner London.

“Barking and Dagenham takes the top spot for the highest number of viewing requests over the past three months, with 192 requests per property on average.”

Jenkins says that affordability pressures suppressing London’s rents are hurting sales with house prices in the capital and the South East dropping 0.5%.

“Tenants are reaching unsustainable levels of rent affordability, as salaries have failed to keep pace with rising rent levels over the last few years, which is encouraging more valuations in line with the market average, hence the drop year-on-year,”

And pointing to similar evidence in other indices he concludes: “Zoopla states that first-time buyers are motivated to buy because they are looking to escape the rapid growth in rents in the private rented sector.”