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Home NewsLondon Rental Market – October 2015

London Rental Market – October 2015

As we move into autumn, rental demand in London remains extremely high. Many of our offices have been busy finding rental accommodation for international students moving to London to study at the city’s excellent universities.We are also receiving a high number of enquiries from young professionals and graduates just about to take up their first jobs. While many applicants do have good budgets, the market remains price sensitive and tenants do expect value for money so generally we are advising landlords to remain flexible on rent and be prepared to negotiate if necessary to secure a good tenant.

Central London

Rental demand is high in Kensington and there is a good supply of rental properties. One and two bedroom properties are in unusually strong demand and are letting very quickly so we are always looking for new instructions. The rest of the market is busy with the start of the new school year.

With such plentiful supply of housing stock generally, tenants are in a strong negotiating position which is leading to strong competition amongst landlords. As a result, we are advising landlords to be realistic about their asking rental and allow us to price their property accurately in line with the market to ensure their property doesn’t stick and reduce the risk of void periods.

Overall, while buoyant, the rental market remains price sensitive – applicants usually have firm budgets and are fairly conservative in what they plan to spend, prioritising value for money over other criteria. Properties should also be well presented to let quickly.

In Knightsbridge, we saw a summer peak in terms of rental demand and the number of enquiries we received, which is unusual as the summer months tend to be quieter.

3 bed flat to rent in Mayfair, W1£1,200 pw
3 bed flat to rent in Mayfair, W1£1,200 pw

This strong demand is continuing into the autumn and during September we have been very busy finding homes for families looking for a new home before the start of the school term. Young professionals and recent graduates moving to London for a new job are also very active in the rental market. Our Hyde Park office, which handles rental properties in the W1, W2 and NW1 postcodes, including Mayfair, Marylebone and Notting Hill, is also reporting strong demand. We have been busy with students looking for rental properties over the last few weeks, particularly in the developments of Paddington Basin. We’re also receiving plenty of enquiries from young professionals, many of whom are moving to London for the first time after graduating.

West London

Our new lettings office at Fulham Reach property development in Hammersmith is enjoying exceptionally high demand. We are letting properties as soon as we receive the instruction, in fact we often have a tenant lined up before the landlord has completed on the purchase. This level of demand is even higher than expected and with a limited supply of properties available at this stage, we are actively looking for new rental properties to let.

There is a good turnover of rental properties at Imperial Wharf and the good availability of housing stock is matched by consistently strong demand. Properties are letting quickly but again, landlords need to be mindful of price sensitivity in the market and price their property correctly to ensure it lets quickly.

In Ealing, enquiries are picking up again after a fairly quiet holiday season in August. Demand is increasing for properties and we are receiving a lot of enquiries from relocation agents. Most applicants have good budgets and are happy to pay the asking rental or close to it. Other new developments where we have apartments attracting a lot of interest are Kew Bridge, Kew Bridge West and Apex in Ealing Broadway.

City, Canary Wharf, Docklands and East London

The City, Canary Wharf and East London continue to see strong rental demand. In Canary Wharf, apartments within a 10 minute walk of the Canary Wharf Estate are most sought-after, particularly towers such as the Landmark, Pan Peninsula and Baltimore Tower.

Canary Wharf has shed its image as an isolated business centre and rental demand is higher than ever, with shopping malls, restaurants and other amenities adding to its appeal. Rentals offer good value – a one bedroom apartment in a premium tower in Canary Wharf fetches £425-£450 per week – in the City a similar property would cost upwards of £550 per week.

Demand continues to grow too in regenerated areas such as Marine Wharf, Greenland Quay, Maple Quays, Lewisham and Deptford. Our new Marine Wharf office, opening late Autumn, is already seeing exceptional demand from tenants looking for affordable, high quality accommodation close to the financial centres of Canary Wharf and the City.

In the City, the lettings market remains buoyant and the last few weeks have seen unprecedented demand from wealthy, international students in particular. Most have good budgets and typically they are prepared to pay £600-£1000 per week for a one bedroom apartment. We let 10 apartments in September alone to students moving to the City to study at one of the excellent universities nearby. Developments such as the Heron in Moorgate, Goodman’s Fields near Aldgate and St Dunstan’s near the Strand are particularly sought-after.

Great Jubilee Wharf, Wapping E1W
Great Jubilee Wharf, Wapping E1W

Over in Greenwich, tenant demand remains as strong as ever. The new Uberhaus apartments at Greenwich Millenium Village are attracting a lot of interest and we have waiting lists of applicants for one, two and three bedroom duplex apartments here. With new apartments completing at the moment, we would urge landlords to get in touch if they are planning to rent out their property. The picture is similar in Wapping, with the number of applicants outnumbering the number of properties we have available to let. 21 Wapping Lane is one of the most recent developments to launch and again interest is very high.

North West London

Extremely high rental demand and a shortage of properties remain the dominant themes in the rental market at Beaufort Park. The last few weeks have seen us incredibly busy, mainly with international students looking for properties close to the University of Middlesex. As that sector of the market quietens down, young professionals are now out in force, looking for smart homes within easy commuting distance of the City and central London.

2 Bed Flat in Beaufort Park, NW9 £400 per week
2 Bed Flat in Beaufort Park, NW9 £400 per week

With properties letting within days, we’re now short of stock. New apartments at the Carvell and Chapman buildings have launched recently and quickly snapped up. The next phase launches imminently and we expect these to let just as quickly. A two bed apartment in a new block will achieve £420-£460 per week, slightly more than an older property at £390 – £440 per week – applicants are happy to pay a premium for a brand new apartment which has not yet been lived in.

 

Rental demand in Hampstead is picking up after a brief post-summer lull and relocation agents have returned to the market looking for properties ranging from one and two bedroom apartments to larger properties. We are gradually starting to see enquiry levels increase as we move into autumn.In Highgate, the rental market is good for one and two bedroom properties which are letting quickly, particularly those in new developments such as Woodberry Park, Barnsbury Place and Highbury Stadium. Larger family homes are taking longer to let but this is partly because families tend to stay put and renew their tenancy each year when they have found a property they like so the market moves more slowly.

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About the Author

For 35 years Anita has been the driving force behind Benham and Reeves’ success as it has grown from a single branch in Hampstead, to one of central London’s oldest, independently owned sales, letting and property management companies. Anita's vision has driven the expansion of the business to offer a complete range of property investment related services from under one roof, from purchase to handover, furnishings and/or refurbishment to lettings and property management. Read more about Anita Mehra here - Read full profile

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