Local Lettings Market Update
After a somewhat colourful 2016, the eyes of the world were on London’s property market. People exercised caution and many put hold on plans to buy and sell homes in the capital; which gave even greater opportunity for London’s lettings industry. Supply began to stagnate and tenants decided to stay where they were while the political and economic climates played out, rather than looking to buy immediately.
The rentals market came into its own from spring this year; the number of tenants actively searching for properties in Shoreditch in March was up 84% vs March 2016. In stark contrast, supply fell by 27% compared to the same time last year. Demand outstripped supply at a rate never seen before in our Shoreditch office, and throughout the year we have continued to see high volumes of new tenant searches.
Corporate Lettings
In particular, our Corporate & Relocation Services department, the largest of its kind in London, is working with high quality tenants from over 600 multinational companies. For example, in February 2017, 40% of all searches from this department were specifically in Shoreditch, and 60% of all corporate deals agreed were here. This reflects the general trend in demand resulting from the office’s proximity to major centres of business.
Locations and Values
Bethnal Green continues to be a highly popular area for professional sharers, with one-bedroom apartments achieving prices from £300 per week and upwards. Closer to the City in the trendy hotspots of Shoreditch and Spitalfields, similarly sized flats can reach over £500 per week. The warehouse conversions and loft-style properties here and in Wapping are in the highest demand and typically command the highest prices. Two-bedroom flats start at £450 per week but can rise to £1,300 per week depending on their size, standard of finish and location. Prices do start to settle further east towards Bow and Stepney, but properties within such close proximity to the City and its excellent transport links still command a premium.
Meanwhile, Amazon are about to occupy 15 floors of the new Principle Tower in Shoreditch as their new UK headquarters, and world-famous Nobu Hotel & Restaurant is soon to open on Great Eastern Street.
Further north, Old Street, Islington, Dalston and Haggerston form the alternate half of our coverage of east London. N1’s Wenlock Basin is well known for its high-end new homes as well as spectacular warehouse conversions. It’s also a short walk from Old Street and the famous Exmouth Market towards Angel and Islington, making it popular with ‘Silicon Roundabout’ tech professionals. The hotspot for nightlife is Haggerston, an up-and-coming area where warehouses and new-builds facing Regent’s Canal are also in high demand.
As we progress further into the traditionally busy summer market, I anticipate that demand will rise further still. There’s truly no better time for landlords to market their property for rent.
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