As the UK government's coronavirus vaccination process continues to impress, the wider effects of the pandemic remain. Among those adverse effects is a drop in household incomes which is limiting many renters plans to exit the lettings market and buy their own home.

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As the UK's economy is now fully open with a strong jobs market, demand for properties to let has seen an increase in demand from new tenants. Two separate reports show that new entrants to the UK's letting market are on the rise, in addition to existing tenants moving to a new home.

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After an unexpected period for the UK's lettings market, which saw many tenants search for larger properties with more space as soon as they were permitted, the London rental market has begun to see a return of interest in smaller properties in prime locations. With many firms supporting a return to the office for their staff, a recent survey shows that interest in the pied-a-terre sector of the London market has increased over the summer months.

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After making some gains at the end of 2020, average rents in London have fallen for the past two months, while rents continue to rise in much of the rest of the UK.

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