The London rental market is in crisis, according to Guy Gittins, chief executive officer of Foxtons. Gittins stated on the BBC’s Today show that the shortage of rental possibilities in the city is so “dramatic” that people will have to go further out to locate an affordable home. Gittins attributed the issue to a mismatch between supply and demand, which was the result of policy measures made in September’s “mini-budget” that lowered buy-to-let mortgage arrangements. He anticipated that the market deficit will persist for the next two to three years.
The annual results of Foxtons revealed that its lettings company had experienced the most increase, with revenue increasing by more than 17%. In recent months, however, sales activity has slowed due to increasing mortgage rates and living expenses, resulting in a general downward trend in UK property prices.
Yet, there are indications of progress. The average UK home value grew by 1.1% per month in February, according to Halifax Mortgages, while Rightmove discovered that house hunters are now searching in a larger geographical area than before the pandemic.
Although Foxtons anticipates an increase in sales activity later this year, Gittins cautioned that people will have to compromise on property type or location to stay within their budget. As the London rental market shows no signs of improvement in the near future, it appears that renting further from the city may be the only alternative for many renters.
According to Foxtons chief executive Guy Gittins, the London rental market is experiencing an unprecedented crisis. Gittins stated on the BBC’s Today show that the shortage of rental possibilities in the city is so “dramatic” that people will have to go further out to locate an affordable home. Gittins predicts the shortfall will persist for at least the next two to three years.
The annual results of Foxtons revealed that lettings revenue increased by more than 17%, whilst sales activity has slowed due to increasing mortgage rates and living expenses, resulting in a negative trend in UK property prices. Yet, there are hints of optimism, as Halifax Mortgages recorded a 1.1% monthly gain in UK property values in February, and Rightmove discovered that homebuyers are increasingly exploring further afield for more affordable places.
Gittins cautioned that in order to remain within their budget, individuals will have to compromise on the home type or location. As the London rental market shows no indications of recovery in the near future, it appears that renting further from the city may be the only option for many tenants.
