Many landlords across the country are being forced to reduce their rent prices in order to attract new tenants, due to weaker demand from renters, according to a new study by the National Landlords Association (NLA).
With significantly more rental properties to choose from, tenants are firmly in control when it comes to the private rental sector in some parts of the country, notably outer London, as reflected by a drop in rent prices in many parts of the capital over the past year.
Some 16% of private landlords in outer London have reduced their rent prices over the past 12 months, the research found.
The study also reveals that the proportion of landlords raising rents in outer London is the second lowest in the UK, after the North East, despite the fact that almost a quarter (23%) of landlords across the capital have been able to increase the amount of rent that they charge to tenants.
The South West had the highest proportion of landlords that were able to increase their rent prices over the past year, at 42%.
Richard Lambert, the CEO of the NLA, comments on the findings: “These findings do not mean London is suddenly going to become more affordable for renters, but it seems to confirm that the trend of a softening of tenant demand in the capital is well-established.
“Both landlords and tenants are continuing to look outside of the capital to other centres and areas commutable to London, which, if anything, will only serve to push up prices in those regions.”
Landlords, in a market that is leaning more in favour of tenants, are you finding that you’re having to reduce your asking rent prices in order to attract new renters to your properties? And, if so, how is this affecting your profit margins?