CBRE Resi Talks | London Lettings Market: Why is it booming?

New research from Global real estate advisor, CBRE, shows record breaking number of applicants for London residential lettings, showing a 300% increase in August 2021 compared to August 2020. Luke Mills, Managing Director, CBRE Residential and Mike Knowles, Lettings Director, CBRE Residential, discuss what is happening in the lettings market in our latest 13 min video. 

In August this year, CBRE registered a staggering 300% more tenants than in August last year. To put that into perspective, the number of new tenants registering in August this year was almost half of the total number of tenants we registered in the whole of 2020. Also compared to 2019 we registered 223% more new tenants in August 2021 vs August 2019.

Further, in September so far we have already registered an incredible 800% more tenants than in the same period of 2020 so it just shows how incredibly high the demand is this year compared to before and during the pandemic, and further shows why the bounceback has been much more pronounced than predicted, fuelling the market in a positive fashion.

As such, the data from Zoopla suggests that between May and July alone, rents rose 2.3% in the 12 most central boroughs and this is before the incredible demand we have experienced in Quarter 3.

Homelet are also reporting a 3.6% increase in London rents in just August alone with further increases expected in September and beyond.

Overseas students and professional lets accounted for the largest proportion of applicants at 55% and 32% respectively, reflecting the pent-up demand for well located, high-quality Central London properties.

According to the research, studios and one-beds accounted for 54% of applications in August, aligning with the demographic demand from students and professional lets. This was closely followed by two-beds at 43%, with three-beds accounting for just 3% of total applications.

Mike Knowles, Lettings Director, Residential at CBRE said “These numbers paint a compelling picture and solidify the long-term appeal of London’s residential market. In August alone we registered nearly half of the applicants we registered in the whole of 2020, and with our busiest month of September well underway, we anticipate another excellent month of activity.”