Rents drop in London: tenants will pay up to 15 per cent less for a rental home following coronavirus lockdown

London landlords have been forced to drop rents by up to 15 per cent following a surge in the number of empty properties on the market, a leading letting agency said today.

A combination of factors, including fewer overseas students looking for accommodation, a collapse in the number of corporate relocations, and tenants worried about job security and moving back home with family, has reduced demand, according to Chestertons.

Richard Davies, Chestertons’ head of lettings, said: “We are now coming into the busiest time of year for rentals in London when rents are usually at their highest.

"However, we have seen a rapid switch from a landlords’ market to a tenants’ market and landlords are now having to discount their properties by 10 to 15 per cent in order to secure a tenant, or risk facing a long void period with no rental income.”

Chestertons’ figures show there are about 63 per cent more rental properties available in London compared with the same time last year.

Mr Davies said the market was still “incredibly busy” and that it was far from an “Armageddon situation”, but that tenants were generally able to secure a better deal and landlords were needing to drop their rents accordingly.