The London Rental Market – April 2016

Easter tends to be a turning point in the lettings calendar, when property enquiries really start to increase – and this year has been no exception. All our London branches are reporting strong demand for rental accommodation, with apartments in new residential developments still high on the wish list of many applicants. March also saw a new wave of younger applicants with 54% more females in the 18-24-year age group, vs 46% of male applicants with an average age of 30. Most tenants are budget conscious and are prioritising value for money, so one and two bedroom rental properties in London are most sought-after. However, there is also growing demand for high-end properties in some areas but these have to be correctly priced to attract a corporate tenant.

 Central London

Demand for one and two bedroom apartments in Kensington are still on the increase and we have had more enquiries for larger apartments in both modern blocks, particularly North Kensington, and Victorian conversions in the W8 postcode. Many offers from applicants are at asking price. Kensington is also seeing the start of the student market, with some applicants looking for property many months ahead. Two and three bedroom apartments will be much in demand later this year. The relocation  market is now opening up too and we are experiencing strong competition to secure the best properties. Generally, landlords with older properties are recognising that they have to compete with new builds and the standard of furnishings they provide; no longer can properties be let easily if the bathrooms and kitchens have not been thoroughly modernised. We are seeing features like under-floor heating becoming standard and conversion properties at the very least need to have good quality, draft proof windows to find their way onto a tenant’s wishlist here.

Our Knightsbridge branch is very busy, with studios, one and two bedroom apartments in particularly high demand. We are also receiving increasing numbers of enquiries for three bedroom apartments as students start to look for properties to share ahead of the September term. Also a very positive trend we’re seeing is the number of applicants securing tenancies in advance – often they are securing a property which is being refurbished and won’t be ready until the summer but they want to plan ahead. Landlords are increasingly willing to agree a reasonable rent at the market rate, in order to secure a good tenant.

Rental demand is also good around Hyde Park and W2 and there is continued demand for high end, luxury rental properties priced at £1000 + per week. Relocation agents are busy looking for prestigious homes in areas such as Mayfair and Fitzrovia, searching on behalf of senior executives, particularly from the USA, Japan, China and France. As ever, the market for one and two bedroom properties is also strong, particularly in the new developments of Paddington Basin and nearby Ladbroke Grove.

There is strong demand from corporate executives at our Ealing branch situated in the Dickens Yard property development, particularly from Japanese executives relocating to the UK on secondment. One and two bedroom apartments remain very sought-after too. The next phase of apartments at Dickens Yard, Dashwood House, is due to start completing at the end of April and we are already building up a waiting list from applicants who want to rent here.

We are also doing high levels of rentals in Kew where we will be opening a branch this month. This part of the River Thames has become increasingly popular in the last year and as neighbouring Brentford enjoys a transformation, this is a very exciting time to be expanding our branches to 15 in the capital.

At Fulham Reach in Hammersmith, the property rentals are fast moving and our lettings branch continues to experience strong demand. Homes are letting quickly with highest demand for two bedroom apartments which are achieving £700 – £850 per week, depending on the size of the apartment and whether it has a river view.  There is limited availability now at Distillery Wharf but we do still have good stocks at Brunswick House.We are also taking on instructions at other developments nearby including King Henry’s Reach, Hamlet Gardens and Sharp House and are seeking new stock in the wider W6 postcode.

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There is good demand at our Imperial Wharf Fulham branch, which also handles lettings at adjacent development, Chelsea Creek. Many applicants, even those relocating to London from overseas, are aware of its reputation and will specifically request a rental property at Imperial Wharf. As a result, demand is strong throughout the year and well presented, accurately priced properties are letting quickly. Being on-site at the development, ensures a constant flow of stock here.

City, Canary Wharf, Docklands and East London

Rental demand in the City and Canary Wharf remains high, with renting very much a lifestyle choice for City professionals.  Lincoln Plaza in Canary Wharf is one of the latest developments to launch and we have several apartments here which are attracting keen interest. Generally we have good stock levels both in Canary Wharf and in the City, at developments such as Goodman Fields, City Quarter and Avantgarde.

Affordability remains a priority so many applicants are also looking east, north and south to find more affordable options, bringing high levels of enquiries to our Surrey Quays, Greenwich and Wapping branches which are also extremely busy. Developments in these areas are opening up new options for applicants who are often willing to compromise with a location a little further from a tube station, if the spec and the development are good, with the amenities they want, in exchange for a lower rent than properties in the centre of town.

At our branch in Surrey Quays, the launch of Royal Victoria Gardens, at the Marine Wharf development, has been very exciting – we have already received 15 instructions here and let them all within a week. Demand is particularly strong from IT professionals working at nearby Silicon Roundabout in Shoreditch, as well as in Canary Wharf and central London. Our Wapping branch is busy handling enquiries for properties at Wapping Riverside, which applicants love as the properties here have spectacular floor to ceiling windows, with views over the Thames. Over in Greenwich, Platinum Riverside has been very well received, offering great value for money and a stunning riverside setting.  It is only 10 minutes from North Greenwich tube station and it is now generating a lot of interest from applicants.

North London

Rental demand in Highgate is buoyant and we are seeing an increase in enquiries from relocation agents searching for large family homes. Budgets are typically £800 – £1500 per week, with homes in Dartmouth Park, the Holly Lodge Estate and Kentish Town particularly sought-after. Demand is high from French executives looking for homes within easy reach of the Lycée Français, planning for the September school term. One and two bedroom properties are letting quickly, but with many tenants (around 70%) choosing to remain in their property and renew their tenancy rather than incur the costs and inconvenience of moving, stock levels are limited. We’re seeing applicants move to North London to find better value than can be found in central London, often looking for new developments. July sees the launch of a new phase at Woodberry Park. Properties here always let quickly and we are already receiving enquiries from applicants, ahead of the launch.

Our Hampstead branch is also busy. We are seeing an unusually high demand for one bedroom apartments, and it seems quite a few young couples are moving to Hampstead from other parts of London. Landlords are listening to our advice and making sure their property is reasonably priced so most one bedroom apartments are achieving close to the asking rental, £325 – £350 per week for a smaller home.

Competition for rental properties at Beaufort Park in Colindale is strong. The highlight of this year so far has been the launch of the Constantine apartments and demand is exceptional.  One bedroom apartments are achieving £320-£330 per week and two bedrooms £410-£420 per week.  With rental demand growing in Hendon and the wider Colindale area, we are pleased to be taking on property instructions at other local developments such as The Pulse, TNQ and New Hendon Village. A new scheme by Barratt London, Hendon Waterside in West Hendon is also being talked about and we are hoping to secure instructions there in the coming months. We believe this development will have a transformative effect on the area which is situated beside the Welsh Harp Reservoir which takes in 170 hectares of open water, trees and grassland and features a sailing club.

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