Rental Market Update – January 2014

Central London

The New Year has seen an influx of applicants looking for one and two bed properties to rent around Kensington and Hyde Park. Demand from young professionals starting new jobs is driving this end of the market, with strong competition between tenants who are moving fast if they see a property they like. This is driving up rentals a little, with one beds achieving £400-£650pw and two beds achieving £600-£800pw.

Demand for rental properties in Notting Hill is also high, both for luxury properties and smaller one and two bed apartments.

The corporate lets market is strong – for example, we’ve been busy finding a number of apartments for executives from an investment firm relocating staff to London. While some overseas executives like modern, new builds, we find many prefer the architecture of a period property, although of course, with a modern, high spec interior. Apartment buildings with their own porter or concierge are always popular with busy professionals who appreciate the security and convenience they offer.

Over in Fulham, rental apartments at Imperial Wharf are letting quickly and again, demand for one and two bed apartments is high. The market for corporate lets here is also good and we’re seeing many applicants from City firms – finance and accountancy firms, as well as law firms.

With the rental market strong in central London, we’re achieving close to asking rentals. Presentation must be immaculate, but if a property meets the applicant’s criteria and is well presented, tenants are happy to pay around the asking rental.

City, Canary Wharf, Docklands and Greenwich

We’ve had a strong start to 2014 with excellent demand for rental properties across the City, Canary Wharf and Docklands as well as further out in areas like Greenwich, Lewisham and Deptford. Typically, applicants are looking for properties priced at £400-£650pw within a mile or so of the City, with one and two bed properties letting most quickly. With demand rising and strong competition amongst tenants, rents are picking up and we are achieving close to asking rental for most properties.

Rental properties on the fringes of the City and Canary Wharf continue to perform strongly, as they represent such good value for money. For example, a one bed flat in Lewisham close to the DLR will rent for around £1000 per month.

Rental apartments in Greenwich remain very popular, again because of the value but also because of the area’s amenities and reputation. Apartments at New Capital Quay, Marine Wharf and Paynes and Borthwick are letting almost immediately – generally, apartments at new residential developments in Greenwich let within a couple of weeks. Young professionals and international students are drawn to the area but it’s also popular with families – not just because of its amenities and easy commute to central London but also because of its reputation as a safe place to live.

North/North West London

Rental demand in North London remains high at the start of 2014 and our Beaufort Park office has seen applicant numbers rising significantly over the last few weeks. We’re seeing high quality applicants, often professionals working in the City, central London or sometimes outside London. At the moment, most enquiries for rental apartments at Beaufort Park seem to be from UK professionals but we’re also receiving some enquiries from relocation agents searching on behalf of overseas clients. There seems to be a wave of recruitment in the IT sector as IT professionals account for quite a high percentage of applicants.

Brand new apartments to rent at Cavendish and Claremont Apartments at Beaufort Park are in highest demand – the higher spec means they are achieving rents of £370-£380pw. Older apartments are achieving slightly less (£350-£360pw) but are letting just as quickly – most apartments let within one to two weeks. It simply depends on the tenant’s budget.

At our other North London lettings offices, the New Year has also had a busy start, with a rush of applicants looking for properties to rent in Highgate and Hampstead. Properties have been letting quickly and again applicants are having to move fast to secure their choice of property.