Winkworth's latest podcast - The overheated London rental market - how long can the boom last?

by Aaron Strutt

Feb 21 2023

A perfect storm is brewing in the lettings market with rents spiraling, driven by increasing demand fuelled by workers returning to London, landlords selling up and a lack of social housing being built. This is according to leading estate agents Winkworth. 

Dominic Agace, Chief Executive of Winkworth, told his podcast, The Property Exchange: “Landlords are selling up. People are rushing back to the cities for work for the first time, having been working remotely, fuelling demand. People can’t pay beyond what they can afford. I would expect in the coming year that rent rises would slow, albeit still remaining fairly high. It’s a minefield for the Government."

Within a 20 minute commute to the West End, Winkworth Shepherds Bush has seen rent rises of over 20 per cent since this time last year. Rupal Patel, who runs the West London office, highlighted the case of a one bedroom flat on a main road which received multiple offers over the asking rent, with tenants offering to pay a year’s rent upfront to clinch the deal.

Rupal told the Winkworth podcast: “One and two bedroom apartments are renting out very, very quickly. We had 70 enquiries within hours of one flat being listed. A lot of landlords are exiting the market, as a result of changes in tax and new energy regulations for energy performance certificates."