Press Release: Londoners trade up lettings ladder
Fri 01 Aug 2008
- Supply of rental properties in central London up 70%
- Average rent down from 525 per week to 450 year on year
- Tenant demand still rising but at a slower rate than supply
- Rents holding strong south of the river
The number of homes available to rent in central London is up 70% year on year, according to estate agent Marsh & Parsons. The increase in tenant demand is failing to keep pace. This imbalance is offering tenants in central London an exceptional opportunity to trade up the lettings ladder.
In August 2007 an average 500 square foot two bed property in central London was 525 per week to rent. This year the average rent for the same property is 450 per week. Tenants could now be saving up to 4000 a year on rent.
Peter Rollings, managing director of Marsh & Parsons said: Last year young professionals and graduates wouldnt even have considered renting in places like Kensington and Notting Hill the rents were out of reach. But landlords are having to be more flexible this year younger tenants who want an inner city lifestyle and pad to match may be in luck. Rents are definitely more affordable; there is value to be had in this market.
As the credit crunch continues to bite homeowners are choosing to put their properties onto the lettings market rather than to sell at a discount. The number of homes available for rent has rocketed by 70%. A third of all properties on the lettings market with Marsh & Parsons in Kensington & Chelsea were previously up for sale.
A year ago, tenants would have viewed four to five properties before signing a lease, but as the volume of stock on agents books has increased, tenants are able to view an average of twelve properties before making a decision. The imbalance between supply and demand has resulted in higher tenant expectation.
Emilie Dawes, lettings director at Marsh & Parsons said: People looking to rent in central London are in a terrific position. The number of properties on the lettings market in Kensington & Chelsea is unprecedented and tenants are getting great deals on rent. For the first time in several years, tenants have a range of choices. Theyre getting exactly what they want.
The huge increase in supply of property to rent is less pronounced south of the river in areas such as Clapham, Balham and Battersea. Rents are fairly stable in comparison with last year. These areas are traditionally popular with young professionals and new graduates.
For further information please contact:
The Wriglesworth Consultancy
James Staunton / Sarah Davidson
0207 427 1400
Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.
Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property. They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.