Posts with tag: buy-to-let in London

Landlords and tenants leaving lettings market in London

Published On: January 19, 2017 at 2:51 pm


Categories: Landlord News

Tags: ,,,

Demand from tenants in the residential lettings market in London is possibly slowing down, with landlords looking outside of the city for greater yielding investment.

A report from the National Landlords Association revealed that the number of landlords reporting a rise in tenant demand during the final quarter of 2016 fell by nearly 30% points. This was in comparison to the same period 2015.

South East Rises

Findings from the report also show that 40% of landlords in the South East saw a rise in tenant demand during the period. This was the highest recorded in the UK, which, the NLA suggests, shows more tenants are looking outside of London for more affordable accommodation.

What’s more, the firm points out that the drop in rental demand in central London coincides with a more conservative approach from landlords looking to purchase in London during the coming months.

Just 5% of landlords operating in London said that they plan to purchase in the next three months, the lowest across all regions and down by 15% from one year ago.

Landlords and tenants leaving lettings market in London

Landlords and tenants leaving lettings market in London

Northern Highs

In comparison, the number of landlords operating in the North East planning to purchase in the next three months has nearly doubled, from 10% in 2015 to 19% last year.

Landlords in Yorkshire have also expressed a desire to buy, up from 10% during 2015 to 16% in 2016.

Carolyn Uphill, chairman of the NLA, noted: ‘It looks like central London is simply becoming too expensive for most people, regardless of whether you want to buy, invest or rent.’[1]

‘For many tenants the practical solution of moving out of the city to more affordable suburbs with good transport links is becoming increasingly appealing. In turn, it seems that landlords have been quick to respond, turning their backs on the capital and looking to other areas where the upfront cost of acquiring property is lower, and the potential yields to be had are higher,’ Uphill added.[1]


Rents for prime property in central London slow during November

Published On: December 8, 2016 at 10:13 am


Categories: Property News

Tags: ,,,,

Increased activity levels in the prime rental property in central London have served to put downwards pressure on rental values. In turn, this has improved affordability for tenants, according to the latest analysis from Knight Frank.

This has strengthened the negotiation position of tenants during the course of the year, with the number of tenancies agreed in the three months to November 23.2% higher than in the same period in 2015.

Increasing yields, falling rents

The prime central London rental index report indicates that the average gross rental yield achieved was 3.18% during November. What’s more, average rents fell by 5.2% in the year. This was the lowest it has been since December 2009.

Despite this, the firm predicts that this will ease to a fall of just 2% in prime central London West during 2017.

There is however strong variation in the market. In City and Fringe, annual rental growth was fairly stagnant, but in Kings Cross, it rose by 0.3%. In Tower Bridge, there was a slight increase of 0.1%. In all other regions of prime central London, rents decreased year-on-year.

Rents for prime property in central London slow during November

Rents for prime property in central London slow during November


Riverside led the way in terms of decline, with rents down by 9.3%. This was followed by Hyde Park (-9%), Marylebone (-8.8%), Notting Hill (-8.6%), Knightsbridge (-7.3%) and Belgravia (-7.1%).

At the same time, the number of viewings rose by 18.4%, with would-be tenants also rising by 7.8% over the same period.

Tom Bill, head of London residential research at Knight Frank, feels that the figures represent the increased regulatory uncertainty in the sales market. This has led to a number of vendors opting to let their property as opposed to selling, until more security around future pricing arises.

‘While broader uncertainty persists over issues including the UK’s decision to leaves the European Union and the election of Donald Trump, the extent of the cost pressures faced by banks was underlined in November when several banks failed to meet certain Bank of England stress tests,’ Bill explained.[1]