Despite the cost-of-living crisis around the globe, tenants in London are facing a tough season of hiking rents as real estate expert Nick Millican explains. The higher rent spike is higher than any recorded since the 90s, thus making life harder for people looking for a place to live.
Experts say that even with the financial struggle, the demand for housing is still higher than the supply. As with every situation affected by the law of demand and supply, a decreased supply always leads to a price hike. Nick Millican adds that, while fewer people are asking for new homes, numerous tenants are actively looking for cheaper options.
That is why real estate and investment experts like Nick Millican advise investors to develop social housing and other affordable solutions. Now more than ever, landlords in London are experiencing a slight decrease in the number of people looking for luxury homes. Some homeowners are also selling their homes to look for rental places to help them cope with the financial strain.
Therefore, with more people looking for a place to stay, real estate agents are setting up mass viewings to cope with the demand. Nevertheless, this situation is unlikely to change in the next few months. Nick Millican and other seasoned real estate pros foresee a constant price hike for the next three months.
This is because the demand has been increasing significantly since July and might not drop immediately as the housing and investment expert Nick Millican finally states. According to the researchers, one in every five tenants has been facing eviction in the past year. Therefore, it is prudent for tenants to brace themselves for the tough times and adjust their budgets accordingly.