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Home News Property market updates, Rental market update The London rental market – September 2016

The London rental market – September 2016

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The last few weeks have seen exceptionally strong demand for rental properties in London with each of our 16 London lettings branches reporting high numbers of enquiries from applicants. Beaufort Park in Colindale has reported its busiest summer ever while our City and Canary Wharf branches are experiencing their strongest growth in business for several years. We continue to see high numbers of Europeans relocating to London, but enquiries are also flooding in from professionals in the US and South East Asia.

Central London

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Five bedroom period house in Belgravia

Our Knightsbridge branch has had an extremely busy summer, with properties across all price brackets in high demand. This has ranged from studios and one bedroom apartments which are sought-after by young professionals and couples, and also high end, luxury properties which are letting quickly to senior executives. Demand has been particularly high for premium rental homes, including period townhouses priced from £1500 to £2000 per week, luxury apartments up to £2000 per week, notably in Belgravia, and high end two bedroom apartments generally from £650 to £1250 per week. The student market is also very strong this year – most students have good budgets and typically have been looking for one bedroom apartments in smart, new-build developments for £600 – £650 per week.

In Kensington, we have been receiving good levels of enquiries at what is our busiest time of year. Relocation agents are still busy, mainly searching for properties for young professionals and couples – moving to London from Europe, particularly Spain, Germany and Italy. Demand for new-build apartments remains high but we are also seeing an increase in enquiries for impeccably-presented period properties.

Demand from corporate applicants remains strong around the Hyde Park area with many professionals relocating to London from the US, South America and South-East Asia. They tend to have very good budgets – £1200 to £1800 per week and are looking for high-end, luxury rental homes in new residential developments. Demand from students has also been high in the lead up to the start of the new September term.

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Two bedroom apartment in Dashwood House

Our Ealing branch is very busy, with enquiries for Dashwood House, the latest phase of apartments to launch at the Dickens Yard development, particularly strong. All the stock that we have here is letting immediately with one bedroom apartments achieving rentals of £1,500 – £1,800 per month, with two bedroom apartments at £2,300+ per month. Landlords are usually achieving full asking rental and void periods are minimal. At our Kew Bridge branch, demand is also very high and our lettings team is busy finding homes for professionals, many of whom work in central London. We are taking on quite a few new instructions for beautiful period homes in nearby Richmond too.

Rental demand at Imperial Wharf remains consistently high and the market here is very buoyant. One and two bedroom apartments in particular are letting very quickly. Typically one bedroom apartments are achieving £400 – £450 per week, with two bedroom apartments achieving £500 – £700 per week. At adjacent Chelsea Creek, The Tower, the latest phase of apartments to launch, is attracting plenty of interest and apartments are letting very quickly to high calibre tenants drawn to its stunning views and ultra-high spec. One bedroom apartments here achieve £450 – £600 per week and two beds £550 – £800 per week.

In Fulham Reach, rental demand is outstripping supply and we continue to look for new instructions from landlords. Most applicants, around 70%, are relocating to London from overseas, particularly Europe, and choose Fulham Reach for its high spec and amenities together with its proximity to central London. The next phase of apartments, Goldhurst House, is completing at the moment and we are receiving quite a few new instructions here. We have potential tenants already referenced and ready to move in.

City, Canary Wharf, Docklands and East London

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One bedroom apartment at Tinderbox House

Our Canary Wharf branch has had its busiest summer since 2011, especially with enquiries from students in particular. Many are from China and Russia and have good budgets – up to £600 per week for a one bedroom apartment and £750 per week for a two bedroom apartment. Keenly priced developments such as Providence Tower and Horizons are popular as they offer a high spec and good amenities, and because they are slightly further from the Canary Wharf estate, they are more affordable. Our City branch has had its busiest summer period since 2014 and with properties letting quickly we are looking for new instructions to meet the constant demand. Five star developments such as Aldgate Triangle, Canaletto and Lexicon are all seeing particularly strong demand. We are seeing good demand in the Nine Elms area with apartments at Nine Elms Point having just rolled out. Benham and Reeves Residential Lettings will soon have an on-site branch there to add to our growing number of offices in the capital.

In Wapping, the Wapping Riverside development has been very well received – being situated on the river, with fantastic views, and being exceptionally light and airy – unusual for a warehouse conversion. We continue to have good stocks at Surrey Quays and the latest phase of apartments, Tinderbox House, has had a good response from applicants. The spec is very high yet apartments are affordably priced. Rental demand in Greenwich is also very good and the area has seen another new launch recently, Compton House, at Royal Arsenal Riverside which again is proving very popular thanks to its high spec and proximity to the DLR. Apartments here are achieving from £300 per week for a one bedroom apartment. Across East London in general, increasing numbers of tenants are opting for the stability of renewing their tenancy agreements. Landlords are keen to keep good tenants and are often happy to maintain the current rent as they benefit from eliminating a void period and minimising any remedial work that is often carried out between tenancies.

North London

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One bedroom apartment in Beaufort Park

Rental demand at Beaufort Park in Colindale is exceptionally strong, with this summer our busiest ever – we have concluded triple the level of business compared to previous summers. Apartments are letting immediately and we have good stock levels to meet the high demand. The new Goldhawk apartments have been completing, attracting interest from young professionals. One bedroom apartments are achieving £330 per week and two beds £400 per week. With demand so high, we have tenants referenced and ready to move in before as apartments complete, so void periods are negligible. The development is popular due to its high spec and affordability so we often find applicants moving here on the recommendation of friends already living here. We have also been busy finding homes for students, and have seen an influx of Chinese students in particular. They have good budgets and pay a year’s rent in advance plus a 10 week deposit so make high valued tenants.

In Hampstead, rental demand remains strong, and we are receiving plenty of enquiries from applicants relocating to London from the US and Europe. Many of these are searching for premium rental properties, usually three and four bedroom family homes in the £1,000 – £1,200 per week price bracket. As ever, the market for smaller apartments priced at £400 – £500 per week remains consistently strong too.

One and two bedroom apartments are letting quickly in Highgate with demand remaining consistently high. Demand for family homes has also been good as families relocating to London are keen to move home before the start of the September school term.

If you have a property to let in any of these areas, please do get in touch for a free, no obligation rental valuation.

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About the Author

For 40 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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