Renting an apartment in London has become a nightmare

Those who want to rent an apartment in London at the moment may face unprecedented difficulties. The market has completely turned upside down, there are very few apartments for rent and they are snapped up quickly. The problem was basically caused by the change in the regulatory environment, reports CNNBusiness.

The world has changed a lot in 2 years

The portal presents the conditions prevailing in the capital of the United Kingdom through the ordeal of a Spanish student. According to him, he applied for nearly 100 advertisements when he wanted to move back to London at the beginning of autumn, but he received barely thirty responses, and all of them said that the advertised rental property had already been rented out. The current situation is no different from the last time you had to rent a room in the city in September 2020, now you have to shell out a good 300 pounds more per month for a rental property similar to the one you used then.

Homeowners and real estate agents interviewed by CNN all report the same thing, the number of people looking for a rental apartment in London has increased drastically since spring, as students and workers began to return to the city en masse after the epidemic subsided. This increased demand was met with a sharp drop in supply. According to data from the online real estate portal Rightmove, the number of apartments for rent in London fell by around a quarter between July and September compared to the same period of the previous year, while prices rose to unprecedented heights. The rent for a room, including utility bills, rose to an average of 933 pounds (more than HUF 440,000) in October, which is 17 percent higher than the pre-epidemic level.

According to Matt Hutchinson, communications director of SpareRoom, one of the largest online room agencies, the British capital has seen a huge influx in recent months. Students, young people and foreign workers tried to settle in large numbers.

Everything was caught immediately

“At the peak in September, there were nine buyers for every room for rent. We’ve never seen a market like this before,” Hutchinson said. Demand has fallen a bit since then, but it is still high. If someone has advertised a room in the past few months, there is a good chance that hundreds of people have applied. Potential tenants had to fight to even get a response to their offers. In addition, those intending to rent have to commit themselves to a much longer period of time than was usual up to now, and they had to pay rent in advance for a much longer period of time and had to commit themselves to a much longer period of time than was usual up until now. According to SpareRoom’s survey, about half of the tenants had to decide at the first viewing whether or not to take out the given property.

Jeremy Lee, the founder of the North London estate agency named after him, said the number of properties for rent advertised on his site had fallen by 40 per cent compared to November last year. The decline in the number of properties for rent can clearly be traced back to the fact that the profit available on them has drastically decreased due to the new regulations introduced in recent years. Since 2016, the British government has significantly increased taxes on the purchase of a second home and reduced the amount that can be reclaimed from mortgage repayments. In addition, many property owners fear that new legislation will soon be passed that will make it significantly more difficult for them to evict non-paying tenants. The Parliament is expected to decide on this before the end of the year.

According to the summary, the soaring inflation also forced many property owners to leave the rental market, as not everyone can afford the significantly increased renovation costs. The decrease in supply may also have been contributed by the fact that due to rising mortgage interest rates, fewer people decide to buy a home and stay in their current rental properties. The rent for an average two-bedroom apartment in London was 2,226 pounds (roughly HUF 1,50,000) last month, which is 19 percent higher than the value in February 2020. According to the expectations of real estate agencies, this could increase by another 5.5 percent next year.

Source: by

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