Just as prime central London’s rents started to regain some of their lost momentum, unease over the upcoming General Election has resulted in plateauing rental values and even falls in several areas. Most of central London saw virtually no change in rents with gains only really seen in small pockets.
Although Benham & Reeves Estate Agents are reporting a number of tenants choosing to rent rather than buy until after the election, few are willing to trade up to more luxurious properties and rental increases are difficult to negotiate. Even hotspots along the South Bank and in East London saw rental values stagnate or even fall over the last quarter. Interestingly, the picture is consistent regardless of whether the area is dominated by domestic or foreign tenants.
One of the few areas to buck the trend was northwest London where demand continues to outstrip supply. With relatively few new developments in the pipeline, this area that was previously deemed affordable is seeing rental values soar. The completion of Crossrail work in central London that has been affecting Northern Line stations in central London is now nearing an end, making commutes from north London quicker – often under 40 minutes – and more pleasant.
Marc von Grundherr, Director at Benham & Reeves Estate Agents adds,”The entire property market has more or less ground to a halt awaiting the election results. With the major parties announcing policies that would undoubtedly have a knock-on effect on house prices and rental values, few are daring to make a change. The market is simply going to tread water until May 7.”
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