In a difficult rental market, experience is key in order to help landlords overcome fluctuations in demand and ensure their property remains tenanted. Demand for rental accommodation in London is good, but it is the accurately priced, well presented properties that are letting well. Many applicants have reached a ceiling in terms of what they can afford to pay for accommodation so we are advising landlords to be realistic about rents.
On the plus side, existing tenants are tending to renew their tenancies to retain stability. But for those landlords looking for a new tenant, it is important to adapt to market conditions. This could mean negotiating with a prospective tenant over rent in order to avoid expensive void periods. In a new development, it could also mean that flexibility is called for. Many apartments may be coming on stream at once meaning intense competition for landlords who may also need to consider a reduction in rent in order to attract a tenant quickly. There may be a lot of construction work still going on nearby and again, a rent reduction may be needed to compensate tenants initially for the noise and disruption. As ever, listen to your letting agent’s advice.
This is where our 60 years’ experience in the London lettings market comes into its own. This is clearly not the first time we have encountered a difficult market, but we are working extremely hard to ensure our clients’ properties let as quickly as possible. We have our own marketing department who make sure properties are advertised on the best property portals and in the relevant press, as well as on our own websites and social media. We have contacts in the HR departments of many FTSE and Fortune 500 companies who regularly relocate their staff to London. Plus our office managers are experienced and highly knowledgeable about their own areas so they are in the best position to help both landlords and tenants.
If you would like to discuss how we could help let your rental property, get in touch with one of our 16 letting offices.
The rental market across the City, Canary Wharf and Wapping remains good although the market is very price sensitive. The highest demand is for properties priced up to £600 per week. In areas such as Albert Docks in E16 a large number of rental apartments have come on to the market recently so there is a wide choice for tenants. Rentals here for a one bedroom apartment are upwards of £280 per week and for a two bedroom apartment upwards of £310 per week. In the City itself, there is a similarly good stock of rental properties and to ensure a property lets quickly landlords must pay attention to presentation which must be first rate. One of the most sought after developments at the moment is Glasshouse Gardens in Stratford overlooking the Olympic Park where one bedroom apartments are achieving £395 per week and two bedroom apartments are achieving £425 per week, both offering tenants excellent value. Our Canary Wharf office also has good stock of rental properties and those that are priced keenly are attracting tenants quickly. Each of our units at Canary Gateway have now been let while apartments at Dollar Bay and London City Island are also seeing good demand. The new London Dock development in Wapping is also being well received and the next two phases, Counter House and Ariel House are proving popular. One bedroom apartments are letting for upwards of £495 per week and two bedroom apartments upwards of £750 per week.
South East London is still a hotspot for applicants looking for excellent value and good transport links. In Greenwich, New Capital Quay remains very popular as does Royal Arsenal Riverside just a little further down the river at Woolwich. On the borders with Blackheath, Kidbrooke Village is a favourite for tenants looking for a convenient but affordable home within easy reach of the City and central London. Our office at Surrey Quays is looking forward to the launch of the next two phases of the development, Mariners Place and Endeavour House, which are due to be released in early June. We have a lot of new instructions here and are already receiving enquiries from tenants. Prices are from £350 per week for a one bedroom apartment and from £420 per week for a two bedroom apartment.
Our office at the new Nine Elms Point development is very busy at the moment and the area is one of the most exciting rental hotspots in central London with demand growing daily. Battersea Power Station is attracting huge interest from applicants, with enquiries coming in particularly for apartments at the new Ambrose House and nearby Sky Gardens. Apartments are letting quickly, sometimes within days of coming on to the market. Our Imperial Wharf and Chelsea Creek offices are busy, with the market picking up considerably over the last few weeks. The developments remain extremely popular and we continue to see most tenants renewing their leases at the end of their term as they are happy to remain in their current rental properties. At Chelsea Creek we are currently handling enquiries for the latest phase to launch, Lockside House. These apartments are letting quickly with prices from £475 per week for a one bedroom apartment and from £575 per week for a two bedroom apartment.
Rental demand at Kew Bridge has been very good especially for two bedroom apartments. We are dealing with a lot of enquiries from couples and young families who like the community feel of the development as well as its easy transport links into central London. We are also handling a lot of corporate lets here for company directors with good budgets who like to be within easy reach of both central London and the M4 corridor. At Dickens Yard in Ealing we have been seeing good demand although we do have a shortage of stock at the moment. This is partly due to the fact that most tenants are renewing at the moment. June will see the launch of the new Vista Apartments so the short supply of properties will then be solved. We are already receiving enquiries for these which will rent for upwards of £350 per week for a one bedroom apartment and £530 a week for a two bedroom apartment. At Fulham Reach in Hammersmith, Faulkner House and Goldhurst House are continuing to attract a lot of interest from applicants. There is an ongoing trend towards applicants looking for larger, three-bedroom properties here – often professionals with families. The development is becoming more well-known now, accounting for its increasing popularity. We are also now handling enquiries for the next phase of Queen’s Wharf, apartments which offer excellent value for money and a good spec, although with fewer amenities. Prices are from £450 per week for a one bedroom apartment and from £375 a week for a studio.
Enquiries are picking up in Kensington and we are seeing a lot more movement in the market generally. One and two bedroom apartments are in demand at the moment particularly from younger professionals on modest budgets. Across the board the rental market remains price sensitive and with plenty of availability of stock there is competition amongst landlords to attract good tenants. The last few weeks saw rental demand in Knightsbridge a little slower than we would expect at this time of year but demand is picking up now with enquiries starting to come in from young professionals, particularly graduates looking to move to London with their first job. Most are looking for a one bedroom apartment, planning to start their tenancies in August or September. Similarly, in Hyde Park the highest demand is from young professionals looking for smaller apartments; again many of these are graduates moving to London to take up their first jobs. Studios and one bedroom apartments are therefore the most economical options for them. Two bedroom apartments for professional sharers are also in demand.
Demand for rental properties in Hampstead is good but the market is price sensitive so landlords must ensure that their properties are priced accurately in line with current market conditions. One bedroom apartments are letting quickly and we are now completely out of stock of two bedroom apartments so we are keen to talk to landlords about new instructions. The market for larger family homes priced at over £1100 per week is still a little slow but we expect this to change as we get closer to the start of the September term. In Highgate, after a busy spell we are now taking on new instructions to replenish our stock levels. We are starting to receive enquiries from families, particularly from France, looking to relocate to the area. Many are looking in Dartmouth Park in roads close to the Lycée Francais. Typically they have good budgets of £800-£1500 per week. Rental demand has picked up considerably at Beaufort Park in Colindale over the last few weeks – enquiries had slowed a little but now the market is buoyant and we are seeing more interest as applicants continue to be drawn to its excellent amenities and great value. Since the launch of Golding House and Goldhawk House we now have good stock levels, with all apartments professionally furnished by an interior design company. We continue to see professionals relocating from overseas and we are also now seeing the start of the student market, with enquiries coming in from international students, particularly from China, about to start their studies at the University of Middlesex. These students tend to pay full asking rental, often paying six months or a year in advance, so make excellent tenants.
If you have a property to let in any of these areas, or would like a free no-obligation rental valuation of your property please do get in touch with us. For more London rental market news and updates, subscribe to our newsletter.
View all posts by Anita Mehra