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Home NewsRental market update The London Rental Market – October 2014 Update

The London Rental Market – October 2014 Update

2 bed flat to rent in Lancaster Gate, £2,000 pw
2 bed flat to rent in Lancaster Gate, £2,000 pw

We are well into autumn now and the London rental market is forging ahead. Rental demand is strong across the capital and this is one of our busiest times of the year. All our 11 London offices are commenting on the exceptionally high number of enquiries that they are receiving.   The majority of these are from young professionals moving to take up their first job in London after graduating, and of course, from international students coming to London to study. With London rental properties letting so quickly, we are keen to find new instructions.

Central London

We’ve seen exceptionally high demand in central London recently, with the rental market exceeding expectations. Our Hyde Park office is reporting that they are receiving a particularly high number of enquiries from international applicants moving to London to take up a new job.

High demand at 3 Merchant Square, limited stock

New developments are always extremely sought-after and the developments around Paddington Basin are being snapped up by tenants. One of the most popular is the recently launched 3 Merchant Square which has been attracting huge interest from young professionals. Apartments have been achieving full asking rental and some tenants have even made offers without seeing the property, simply because of the popularity of the area and the reputation of the developments. Location is key, with tenants compromising by taking a one bed rather than a two bed apartment to reduce costs, so long as they can have the W2 postcode.

We have continued to see an influx of students, even more than usual, into October, many with higher budgets than last year. They’ve been paying 12 months’ rent in advance and renting properties (usually one beds) with asking rentals of around £550pw, compared to £400pw last year.

The City, Canary Wharf, Docklands and East London

1 bed flat to rent in Southwark, £495 pw
1 bed flat to rent in Southwark, £495 pw

Studio flat to rent in Canary Wharf, £340 pw

Autumn is a very busy time for our East London rental offices and this year is no exception – we had a record breaking September and we expect October to be the same.   The market is extremely buoyant and we’ve had an influx of young professionals looking for rental properties in the City as they take up their first jobs after graduating. High demand from international students also continued well into October, with most looking for studios or one bed apartments priced at £400-£525pw. We also have good demand from professional sharers looking for two bedroom, two bathroom properties too.

Developments like The Heron near the Barbican are very popular. Apartments here are letting very quickly as applicants love the location – close to the bars and restaurants of Old Street and Shoreditch – and the development’s many amenities such as a fitness suite and concierge. We often find that we’ll find a property for a tenant and then ask us to find an apartment for a friend or colleague there too.

Young professionals tend to be quite knowledgeable – they research the market, compare properties and prices and negotiate to get a good deal.   Most tenants remain budget conscious and looking to get the best value possible.   Many applicants continue to look beyond the City and Canary Wharf in areas like Greenwich, Lewisham and Bow where they can find more value for money.

With demand so high, we are running short of stock, particularly studios and one bed apartments. Applicants are having to put in an offer quickly to secure a property because of the shortage of stock.

North/North West London

Manhattan apartment to rent in Beaufort Park, £280 pw

Rental demand is incredibly high at Beaufort Park in North London, with studios and one bed apartments letting particularly quickly. We’re also seeing high numbers of professional sharers looking for two bed apartments. Much of the rental demand is coming from young professionals moving to London for the first time and taking up new jobs after graduating – many are attracted by the easy commute into the City and of course, the high specification of the apartments and the on-site amenities. We have also been experiencing high demand from international students who tend to secure a property in good time, ahead of the start of the University term, to ensure they find the right home.

Because of this high level of demand, we are now running short of stock and have a waiting list for one bed apartments. We have no availability at all in the latest buildings to launch, the Empire Apartments and the Emerald Apartments, and we are actively looking for new instructions across the development.

Generally, one bed apartments are achieving almost £300pw and two bed apartments £400pw-£420pw, around 10% higher than the same period last year.

If you are interested in renting a property in London our contact our friendly lettings negotiatiors who can help you find your ideal home.


About the Author

Established in 1958, Benham and Reeves is one of London’s oldest, independently owned property lettings and sales agents.  With specialism in residential sales, corporate lettings and property management in prime areas of London, the company operates from 21 prominently located branches and 14 international offices.