The benefits of letting out your London property 

The thought of letting out a property in London’s dynamic, fast-paced rental market may seem somewhat daunting at first. Yet the market here is an incredibly strong one – the UKs capital has a population of more than eight million, with new residents always moving in to the city, which is the wealthiest in Europe. So there’s a consistently high demand for rental properties. In all, some 2.7 million Londoners are private tenants, meaning the proportion of renters here is higher than across the rest of the country.

With so many people attracted to all that this world-class city has to offer in terms of work and other opportunities, you’ll always be able to rent your place out, either for shorter-term tenancies or longer periods of, say, six months or more.

Here we outline the benefits of letting out in London in more detail:

1.)    Strong demand

The BBC outlined recent figures from Trust for London showing that 45,000 homes were removed from the capital’s rental sector between April 2021 and December 2023, representing a net loss of more than 4.3% of the market. And the National Residential Landlords Association stated that this was contributing to higher rents – these increased by 11.5% in 2024. This means that the capital saw the biggest rent rises in England, the Office for National Statistics (ONS) reports. All of which suggests that the city’s rental market is a landlord’s one. So with such a large, diverse pool of potential tenants, you’re extremely likely to find reliable, long-term renters.

2.)    Financial benefits

You can expect a high rental yield no matter which London borough you rent out in, guaranteeing a steady income to cover your mortgage payments and other costs.

Letting also protects you against house price fluctuations. This March, for example, as reported in the Standard, house price growth across the capital was outpaced by gains made elsewhere in the country. (Although in the year to March, there was still a 0.7% uplift in London prices, with one major online property portal stating that the average London home is worth £534,200.) Essentially, by renting out a place, you enjoy a decent income but can sit out any potential price fluctuations and wait to sell until the market is more favourable. Your London property will always increase in value over time.

Equally, by renting out rather than selling up, in the short term you benefit from avoiding all the additional costs and upheaval involved in moving. Additionally, it’s a way of keeping and protecting your investment, and hanging on to a home to which you may have an emotional attachment.

Finally, if your London property has significant equity, letting it out could create opportunities for refinancing and release some of the equity, allowing you to make other investments. 

3.)    Flexibility

As with letting out anywhere, you keep ownership and control of your flat or house, and retain the option to move into it at some point in the future should you wish. So if you travel a lot, need to move elsewhere temporarily for any reason, letting out can prove the ideal solution.

Talk to McGlashans Property Services about London rentals

Established in 1988, McGlashans is an independent, family-run estate agent which draws on more than three decades’ experience of working in the prime central London property market. What we offer is a bespoke, boutique service covering lettings across the heart of the capital.

Get in touch today to discuss what you need. Call 020 7486 6711 or complete the simple online enquiry form today.