Today's rental properties have seen prices reduce by over 25% on the highs seen last year.
Studios are being advertised in the £700 to £800, 1 Bed flats from £900 and two beds from £1000.
Each week prices drop and loads of properties are waiting to come to market. However, in some parts of London prices have fallen much further seeing 50% reductions.
Therefore, if you are moving these prices are bound to fall further for the following reasons.
1. Loads of people have given up rented accommodation to return to parental homes.
2. Students are not booking for Autumn term until they are sure courses will run on campus. This alone has slashed the bigger property prices for sharers.
3. Travel restrictions mean tourists and short term workers are not around anymore and these restrictions will last quite a few years on planes etc.
4. Tens of thousands are losing their jobs once furlough ends. Many of these are either giving up properties with high rents to leave London or get cheaper properties as other properties fall in price.
5. The London Local Housing Allowance is only £90 per week in Barnet. This means that the maximum rent which will be affordable for one person is around £400 a month. Therefore unless studios and one bed flats fall to under £400 and £800 they may remain empty.
This situation is likely to last for years. In some ways it is good the market has corrected the bubble but anyone who bought at the peak for air b n b will be in huge trouble once mortgage holidays end. So we see more price decreases in the next 6 months.
Our advice is negotiate your rent for 6 months and then a review. That way you can move or reduce your rent if the market falls further.
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