Renters in London may have to move further out of the capital due to shortage of rental options, said the boss of London’s biggest estate agent. Foxtons chief executive Guy Gittins said that people who are being priced out will “have to compromise on the property type or location.”
He told BBC: “We absolutely don’t welcome this but people are going to have to move.”
His comments came after the estate agency reported its annual profits had doubled in the past year.
Its lettings business saw particularly strong growth, with revenue up more than 17 percent.
However, Mr Gittins said a mismatch between supply and demand was the real problem.
He told Radio 4’s Today Programme: “The main issue is not affordability for the majority of the market – it’s the stock issue.”
However, the latest data from the Halifax suggest the situation has improved somewhat.
Average UK property values increased by 1.1 percent on a monthly basis in February, it said, accelerating from 0.2 percent growth in January.
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Kim Kinnaird, director at Halifax Mortgages, said: “Recent reductions in mortgage rates, improving consumer confidence, and a continuing resilience in the labour market are arguably helping to stabilise prices following the falls seen in November and December.
“Still, with the cost of a home down on a quarterly basis (by 2.5 perccent), the underlying activity continues to indicate a general downward trend.”
Meanwhile, a new data suggested that record numbers of families are living in London’s hotels amid the ongoing rental crisis.
A new report from Westminster Council shows the number of households lodging in hotels has increased by 1,740 percent.
Hotel rooms cost on average £268 per night, which is nearly £1,900 a week, or £8,152 per month.
Figures in the report show between 2020 and 2021, fewer than 10 homeless households were placed in temporary accommodation in commercial hotels.
However, this since rose to 184 between January and October 2022 – an increase of 1,740 percent.