Sunday Review Business

For Rebeca Blázquez, the past few weeks have been a “nightmare.”

Based in Madrid but hoping to find work in London before starting her master’s degree, the 22-year-old university graduate spent a Month of online searching a Room to Rent London a £900 budget ($1,070). She sent numerous messages to landlords and tenants who were moving out, and she logged in. Virtual viewings were not possible because the room was already taken.

“I think that I sent over 100 messages to different ads, and I only had [a] reply to 30 messages,” She spoke to The Sunday Review Business.

Property search, agents, and renters The Sunday Review Business interviews specialists a frenzied scramble for rental units Students and workers have returned to the area since the spring. city After the pandemic.

This surge in demand was met with a steep drop in supply. Rightmove data shows that London has a surprisingly low number of rentals. a Quarter between July and September compared to the same period in 2021. Prices have skyrocketed a All-time highs in results

The average monthly rent includes bills a In the room a shared house or apartment hit £933 ($1,109) in October, up 17% from before the pandemic, according to data from SpareRoom, the country’s biggest roommate search site.

Blázquez said that apartment hunting this fall was a It was a far cry from what she experienced in September 2020 when she rented her last apartment in the city. She settled on a place earlier this month, but is paying nearly £300 ($357) more for a A similar-sized room can be found in a less desirable location.

“I rented it without seeing a video or anything because I was so desperate,” She spoke.

Matt Hutchinson is the communications director at SpareRoom. He told The Sunday Review Business that capital has seen a “huge influx” of students, young people and overseas workers in recent months — demand that the pandemic kept bottled up.

The site was at its peak in September when almost nine people searched for each room.

“We’ve never seen the market like it is now,” Hutchinson agreed.

Thought demand has Although it has fallen slightly since September, the peak is still much higher than the average summer peak. market This is typically its busiest.

“If someone has advertised a room in the last few months, chances are they’re getting hundreds of responses,” Hutchinson agreed. “It’s a battle to even get a response or get an agent to see you,” He concluded.

Renters in the United Kingdom have to go to great lengths to ensure their rent is secure a room.

In a SpareRoom survey of UK renters September a fifth stated that they paid the bill. several months’ rent Up front, while a fifth stated that they had to offer more than the asking cost to secure the space.

Nearly half of those surveyed said they had made a decision during their visit. a You can decide to take the space.

The Sunday Review Business spoke with Greg McLoughlin about when he began his business. “exhausting” Six-week search a In October, he was asked many times to pay the rent. a deposit equivalent to eight weeks’ rent — double the typical four weeks.

McLoughlin, Who works for a He also spoke of cryptocurrency exchange “rarely got any messages back” SpareRoom – despite the fact that you have to pay An £11 ($13) weekly subscription so that he could respond to ads within seven days of them being posted.

He finally snapped him up a In the room a Five-bedroom house in south London for £950 ($1,130), though the landlord has He warned that rents will increase. Still, he’s relieved.

“Everyone’s super on edge looking for accommodation,” McLoughlin added. “You can’t hesitate in this market,” He concluded.

The problem is very simple. Too many people are renting to look for homes.

Jeremy Leaf founder of Jeremy Leaf & Co, a The Sunday Review Business was informed by a real estate agent in London that there is a 40% drop in the number of properties being advertised on his website compared to November 2012.

Landlords have been moving out of the country rental market It becomes less and less lucrative.

The UK government is now in its 16th year has Higher taxes for second homes purchased The amount of tax landlords are entitled to on their mortgage payments can be reduced.

It is also a concern for many landlords. become It is very difficult to expel difficult tenants — including those who may be behind on their rent, have caused damage or mistreated their roommates — if the government passes draft laws that prohibit “no fault” Leaf explained that Leaf could evict tenants. Tenants under 18 years of age can be evicted by landlords. a Different process. However, this can take much longer and involve additional steps. a Court hearing. The new legislation will be up for vote in Parliament before the end the year.

Add that! spiraling inflationIt is no longer as lucrative to rent out property.

“Just the cost of getting people to renovate properties, the cost of materials has gone through the roof,” SpareRoom’s Hutchinson said. “Increasingly, landlords are leaving the market because they just can’t afford to do it,” He concluded.

Some landlords are even willing to sell, in order to take advantage of an increase in rental income property prices Amelia Greene is the recipient of the Amelia Greene Award for this year a The Sunday Review Business was informed by Savills director of real estate. The capital’s average asking price has Rightmove estimates that this year’s growth was 5%.

Leaf stated that this year’s supply crunch is being exacerbated by the fact that renters are choosing to stay put and renew their tenancies. a Rent increases are less than what they would receive elsewhere.

An abrupt increase in mortgage rates This is what keeps first-time buyers from giving up. rental marketFurther, the stock is further reduced.

London rent prices could be as high as a million dollars cooled a little Since their “pretty unprecedented” rises during the summer, Leaf said, but the city’s chronic supply shortage means that further hikes are on the way.

“Upward pressure on rents is going to increase,” He stated.

The average monthly rent for a two-bedroom apartment was £2,226 ($2,646) last month, Rightmove data shows. That’s 19% more than in February 2020, before the pandemic led to an exodus of workers from the capital.

Savills expects the average London rent — across all property types — to jump another 5.5% next year.

People who are paying less These compromises can be very costly.

Sally Vince, who According to The Sunday Review Business, he works in commercial properties. a “very stressful” time looking for her £700 ($832) room this summer, she took what she could get.

“[I] pay less rent, but I’ve had to compromise a lot on how many people I’m living with… the amenities available, and just the overall condition of the flat,” She spoke.

Vince compares her current apartment hunt to her earlier one in 2019. She used to get responses from half the people she asked for in an advertisement room, but she only received three replies this year.

“I’ve got a permanent job now, I know how it works and know a lot of people in London, but it was much, much more difficult this time round,” She spoke.