What Does £1800 Get You in London?
We all know rents have skyrocketed lately, making it more challenging than ever for tenants to find a new home, so we take a look at a flat in London that recently to see what £1,730 per month gets you in the current climate!
UK rents in the UK are now at the highest rate on record and there is little sign of them falling anytime soon. According to Zoopla, average rents have been increased by £10 per month over the last year , which is an annual increase of £ 1,320.
Just in the last 3 years, rents for new lets are up by an average of £ 2,772 per year – and that’s not even the worst part! Landlords are having a hard time making a profit, leading them to sell up their properties, tightening supply even more, driving up competition, leading some tenants to offer well over the market rate. In cities like London, already notorious for a savagely competitive rental market, the number of available properties has decreased by as much as 50%.
What do tenants make of the competitive rental market?
Many of the tenants we spoke to at the flat viewing aren’t looking in a specific location, in order to give themselves more opportunities to find a home, with one stating, “the prices are obviously quite high at the moment and there’s a lot of competition as well, so we found that even if you kind of offer the asking price or slightly over, then it’s still really hard to get a flat.”
One prospective tenant pointed out an additional issue – if you’re a single person looking for a home, even if you’re looking with a friend, it becomes even more expensive as you can’t split the cost as much.
Our current [flat] has gone up to a price that we can’t really afford […] It’s gone up by about 15%, which is obviously a lot and I’ve got friends that have gone up by kind of 50% plus.
People are really struggling at the moment to find something in their budget, so it’s no surprise that this flat got 65 enquiries to view.
How has the landlord pitched the property?
The landlord has been pretty honest in the Rightmove ad that the flat is quite tired and dated and could use some love. As stated in the ad:
This property is in tired decorative condition. New tenants are welcome to paint or conduct works at their own cost. The condition is reflected in the price.
So let’s see what this flat has a lot to offer:
- Two large bedrooms across two floors
- The carpet is old and faded, it’s even loose in places, with some holes (so not ideal for small children or anyone with mobility issues)
- All of the rooms are a good size
- There are no structural problems or mould that would put any prospective tenants at risk
- One bedroom even has original wood flooring in great condition
- The bathroom has seen better days and is definitely showing signs of wear and tear, however there isn’t any mould or anything like that to worry
What did prospective tenants think of the flat?
Some of the of tenants were worried about some things they spotted in the flat, like some damage to the ceiling in the kitchen, but several of them were quite excited by the prospect of being able to put their own stamp on the place:
I quite like the idea of that, as well, to make maybe one of the bedrooms a bit more personal to myself, especially as I’m renting and not owning the place, that can be quite difficult in rental houses
Prospective Tenant at Flat Viewing
In the end, the landlord received 4 offers for the property, with the successful tenant offering £1,800pm. One tenant commented that it was ‘the best we’ve seen’.
One tenant was a little more reserved in their praise of the property, stating:
I think that under normal circumstances it wouldn’t be worth what it is. I think that because of the rental market, how it is, and how it’s increased recently in the last 18 months, I think that it’s a good deal for the current market. I don’t think it’s I don’t think it’s a good deal generally.
Prospective Tenant at Flat Viewing
So there you have it, in a time of ever rising costs and dwindling supply, even a property that has some interior design challenges (to say the least!) is not struggling for views.
But is it fair to offer a property in this state at this price? Would you ask your tenant to do some DIY on your property? If you were a tenant, would you be open to this opportunity? Let us know in the comments just down below!