One size does not fit all, London's rental market, May 2013

London’s residential market probably offers more development opportunities currently than at any other time in the past.

The strength of demand is high, because both population and jobs are increasing and, on a trend basis, are likely to continue to grow in the future. The employment structure is also continuing to shift towards high value-added, better-paid jobs.

Housing supply is tightly constrained, so the prospect is for significant price and rent rises over the next decade and beyond. However, the inevitable cyclical behaviour characteristic of all property markets is likely to remain within these broad trends. So, skill and analysis remain important elements of residential investment decisions.

This report argues that the London residential rental market has now reached a volume and maturity not seen in the past. One key trend is that clear groups of potential tenants with specific dwelling requirements are reaching a scale that is beginning to have market impacts.

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