London renters are leaving the capital for countryside locations

Almost half of London renters currently looking to move have said they will quit London next year once the pandemic is over.

According to a recent survey by the flat share site SpareRoom, over one quarter of London’s renters plan to move post-Covid-19 and of those, 49 per cent intend to leave the capital for good.

It is projected that London will experience a 13 per cent net exodus of renters next year.  

SpareRoom surveyed 4,003 people in the UK aged 23+ who were either renting, flat-sharing, or living with their parents.

With inner London rental prices having already plummeted this year by 14.1 per cent according to Hamptons International and SpareRoom reporting price falls of up to 34 per cent in some areas of the capital, Matt Hutchinson, director at SpareRoom believes this may only be the beginning.

‘We’re looking at a redrawing of the UK’s rental map in 2021 and London will be the biggest loser,’ said Hutchinson.

‘We’ve already seen the effects on London rents, with averages falling consistently since spring but 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.’

SpareRoom’s survey also shows 60 per cent of all renters planning to move post-Covid-19 are not looking to move to a major city.

‘Whether it’s down to the catastrophic effects of Covid-19 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,’ said Hutchinson.

Not everyone agrees

Jeremy Leaf, of the estate agent Jeremy Leaf and Co, said although many will make permanent moves away from the capital, many others will remain seeking a return to normal life.

He envisages a less dramatic scene playing out in the London rental market next year. 

‘Plenty of renters are fed up with working from home, not least because they miss the interaction and banter of office life,’ said Leaf. 

‘Most tenants seem to be keeping their options open and signing up for relatively short periods away from cities of say, six months or 12 months, with a break after six months, at which point they can take stock.’  

Richard Donnell, director of research & insight at Zoopla does not envisage such a dramatic scene playing out in the London rental market next year.

‘There is no evidence to suggest that London will record a mass-exodus of renters in 2021,’ said Donnell. 

‘Instead, Zoopla data shows that the proportion of Londoners looking to stay in the city rose this year compared to last year.’ 

Donnell explained that whilst rental prices in the capital have been dragged down by an over supply or rental properties, demand levels have actually increased. 

‘Demand has reduced the time it takes to rent a London flat to just 18 days – down from 20 days in 2019,’ said Donnell. 

‘There will always be an appetite to live in London and it’s our view that many of those who leave the city for a rural location will be heading back to the capital once life returns to normal.’

This post first appeared on Dailymail.co.uk