London landlords could see rental demand fall, as a large number of tenants are looking to leave the city once the pandemic is over, research from flatshare site SpareRoom has found.
Of London renters who plan to move, half (49%) are looking to leave the city for good,
As a result, there is expected to be a 13% net exodus of renters from London.
Matt Hutchinson, director of SpareRoom, said: “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.
“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.”