Phenomenal Rental Demand
Mon 01 Dec 2014
The lettings market is booming as tenants stay for longer and stock falls, reports Zoe Dare Hall.
As central Londons house prices rises stall, rents are rising at their highest level in more than three years, according to new figures from Lonres.
Based on letting agent responses, Lonres finds demand in the central London rental market has increased by 55% in three months. Yet with 9.5% fewer properties to let in that period compared with the same time last year, rents are rising by 5.5% a year.
Kinleigh Folkard & Haywards Autumn Property Monitor also points to a fall in rental stock London-wide because many of the landlords crashed in when prices were at record levels earlier this year. And tenants are staying longer, with tenancies now at an average of 20 months compared with 16 months in 2013, so fewer properties are returning to the market as quickly.
In prime London KFHs regional lettings director James Thornett reports phenomenal demand from corporate tenants. Investors are increasingly marketing their homes to rent rather than sell. They are able to wait until conditions are at their peak again, says Thornett.
Family renters are also on the up, according to Marsh & Parsons, who report that Notting Hill has seen a 9.6% rise in rental values for four-bedroom properties in the last year about double the rate in outer prime Clapham or Balham.
A possible reason for the rise in family renters is the price differential to trade up from a three to a four-bed house up to 500,000 in some areas of London, according to Landmark Lofts.
And in the London Bridge area, theres a growing number of City workers seeking rental properties to use from Monday to Friday. One client was spending 1,000 a week on hotel rooms, says Cluttons Tower Bridges senior negotiator Simon Deller. So he realised the sense in renting a two-bed flat for 550 a week instead.