London is set to experience a 13% net exodus in renters once the pandemic subsides.
Editorial Team | December 10th, 2020
According to research published by Flatshare rental site SpareRoom.com, 27% of the capital's renters are planning to move once COVID restrictions have been lifted with 49% of these determined to leave the city for good.
The research shows that almost a quarter (24%) of 23-29 year olds have already left their rented accommodation during the pandemic choosing to move back into family homes because of job loses or to save money .
Matt Hutchinson SpaeRoom Director says, “We’re looking at a redrawing of the UK’s rental map in 2021 and London will be the biggest loser. Whether it’s down to the catastrophic effects of COVID on tourism, hospitality and the arts, driven more by lifestyle factors like wanting outdoor space, or simply the realisation that many jobs can now be done from anywhere, London living is losing its appeal for many."
He continued "We’ve already seen the effects on London rents, with averages falling consistently since spring. What happens next is the interesting thing. This could be the start of a changing UK economy that relies less on London and the South East, as remote working becomes the new norm. If that’s the case, London rents are unlikely to recover quickly and house prices could follow suit once the stamp duty holiday ends.”
As a result it is projected that 2021 will witness a 13% net exodus of renters from London, the plus side of this will of course be that as supply begins to outstrip supply rental rates will begin to reduce dramatically.