Posts with tag: rental market in London

Brexit has caused a mixed London rental market

Published On: July 8, 2016 at 10:21 am

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Categories: Property News

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The result of the EU referendum has created a mixed rental market in the capital, according to a new report by letting agent Benham & Reeves Residential Lettings.

Rents were up by in excess of 4% in Chelsea, however in nearby South Kensington, rents were down by around the same figure. Similarly contradictory results were evident across the capital in the second quarter of the year.

Brexit uncertainty

In the earlier part of this year, uncertainty over the result of the EU referendum was having an impact on the prime central London rental market. Rents in the capital were falling, frustrating landlords suffering from reduced capital growth.

With rental value growth seen in outer London suburbs until recently, the report indicates that even these locations have now seen a peak. Rents in these areas have either plateaued or have risen only marginally.

The lack of any definable trends is certainly noticeable. For example, Hampstead Garden Suburb enjoyed rental growth of over 4.5% but nearby North Finchley saw rents tumble by over 10%. The eastern part of London has seen double-digit growth, thanks largely to high-value developments in the region. However, the Western part of London has seen rents slide by more than 4%.

Brexit has caused a mixed London rental market

Brexit has caused a mixed London rental market

Volatility

Marc von Grundherr, of Benham & Reeves Lettings, said, ‘there is nothing the property market hates more than uncertainty. While the referendum result may not have been what many London residents wanted, it has provided us with an answer. Our Q2 results are a reflection of what was happening in the market in the run up to the vote.’[1]

Continuing, he noted that, ‘if anything, the referendum result could be just what the market needed. The rental market always benefits in financially volatile times as people would rather rent than commit to buying a property. Demand is still strong and since the referendum, we are receiving an average of 17 applicants per property compared to the 13.9 at this time last year. Notably, many of the applicants have been from the EU.’[1]

[1] http://www.propertyreporter.co.uk/landlords/has-brexit-caused-a-mixed-rental-market.html

Is London turning into rental capital of world?

Published On: July 10, 2015 at 10:37 am

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Categories: Landlord News

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A new survey has revealed that a quarter of homes in the capital are privately rented and has led some industry experts to suggest that the make-up of parts of London could be changed forever.

Research from property data company Lonres and analysts Dataloft show that 40% of properties in Westminster are being let in the private rented sector, the largest figure in the capital. Kensington and Chelsea came in second with 36% of homes being privately rented.

Costly

Carmen Champney of Hathways estate agents, believes that renters in the Victoria and Westminster area are spending aroiund £500-£650 per week for single-bed flats in the region. Purchasing a property here would set back buyers in excess of £900,000.

Champney is concerned that the rising number of renters are creating a large turnover, which in turn is detrimental to the feel of the region. ‘I think you lose a bit of the heart of the community with so much change going on all the time,’ she commented.[1]

Is London turning into rental capital of world?

Is London turning into rental capital of world?

Findings from a separate report by Hamptons International shows that the average cost of a rental property in London has increased by 6% during the last twelve months, to stand at £316 per week. Even in the cheapest London boroughs of Bexley and Havering, the average rental cost of a one-bedroom flat is £170 per week. For two bedrooms, costs are around £225 per week.

 

[1] http://www.homesandproperty.co.uk/property-news/news/london-new-renting-capital-world