{"id":19666,"date":"2021-06-08T13:08:57","date_gmt":"2021-06-08T12:08:57","guid":{"rendered":"https:\/\/www.benhams.com\/news\/?p=19666"},"modified":"2021-06-09T05:51:24","modified_gmt":"2021-06-09T04:51:24","slug":"jun-2021","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/news\/property-rental-market\/jun-2021\/","title":{"rendered":"The London rental market \u2013 June 2021"},"content":{"rendered":"

There is a growing feeling of optimism in the London rental market<\/a> as enquiry levels have continued to increase significantly over the last few weeks as the UK continues to open up post-lockdown.\u00a0 Much of this is thanks to the UK\u2019s extremely successful vaccination programme which is driving forward the re-opening of businesses and the economy generally.<\/p>\n

\"\"After a year of restrictions, pent-up demand from London\u2019s professionals is evident and we are seeing more\u00a0 applicants looking for a new rental property<\/a> and committing to a move as soon as they find the right home.\u00a0 Their requirements are often different now as they perhaps adapt to a change in circumstances and the rental landscape in London is definitely changing.<\/p>\n

As we\u2019ve mentioned before, a larger home, perhaps with a second bedroom to use as a home office, outside space or proximity to a park are now priorities for many tenants. \u00a0Of course, a landlord cannot change the location or size of their property, but if you own a one bedroom property for example, it may be worth considering creating a study area with a desk and storage in a corner of a living space to show potential tenants that it is possible to work from home comfortably.<\/p>\n

In areas such as Hampstead<\/a> and Highgate<\/a>, garden flats are in high demand and are letting more quickly than properties without outside space.\u00a0 So rents on apartments with a garden or terrace are holding up well compared to properties that don\u2019t have this access.<\/p>\n

Another interesting trend is the growing demand for properties<\/a> whose landlords will accept pets.\u00a0 Lockdown saw a dramatic increase in the number of people owning both cats and dogs so landlords who wish to ensure their property lets quickly should be prepared to welcome a tenant\u2019s furry friend too!<\/p>\n

Oversupply of rental properties in London now starting to reduce<\/strong><\/p>\n

Since the first lockdown, London\u2019s lettings market<\/a> has seen an oversupply of properties leading to applicants negotiating to reduce their rent.<\/p>\n

Many professionals left the capital to return to their home towns, both in the UK and overseas, handing back their leases early.\u00a0 And as tourism ground to a halt, leaving many Airbnb and other short-term let properties vacant for months, landlords flooded the long-term rental market with their properties as they looked for other ways to find a tenant.<\/p>\n

This situation is gradually changing.\u00a0 With hospitality and tourist attractions opening up again, many UK citizens are choosing to take a staycation this year. So this flood of short-let properties in London<\/a> is diminishing, reducing the overall supply of rental properties and rebalancing supply and demand.\u00a0 As a result, rental values are starting to stabilise.<\/p>\n

While applicants are understandably keen to negotiate on rent, they are now making much more sensible offers, aware that the current situation in terms of oversupply will not last much longer as stock levels reduce and competition for properties becomes stronger.<\/p>\n

Demand from overseas professionals picks up<\/strong><\/p>\n

Many of the areas of London covered by our eighteen\u00a0London lettings branches<\/a> are also seeing the return of enquiries from relocation agents<\/a> and overseas professionals who are actively considering a return to their London life.\u00a0 This is a gradual process but enquiries are building and we expect demand to increase over the next few months.<\/p>\n

Many of these professionals love the look and feel of a brand new apartment<\/a> and there are several developments or new phases of existing developments completing at the moment.<\/p>\n

New residential developments completing soon<\/strong><\/p>\n

\"\"These new developments are tempting renters with their high spec and amenities.\u00a0 Close to the City in Canary Wharf, One Park Drive is attracting a lot of interest and we are letting the first apartments here. We are receiving enquiries for the latest phase at South Quay Plaza (E14) and also at Landmark Pinnacle, close to Canary Wharf.\u00a0 Cashmere Wharf, the latest phase at London Dock, is due to start completing later in the summer and we are already receiving enquiries for apartments here.<\/p>\n

In North London<\/a>, apartments at the two latest buildings to complete at Beaufort Park in Colindale (Fairbank House and Fairmont House) are letting very well.\u00a0 Generally two bed apartments are letting most quickly at the moment, many to BNO passport holders from Hong Kong<\/a> who are moving to London for the first time.\u00a0 Rents are holding up well at this ever popular development and we are also continuing to see good demand from overseas professionals \u2013 from Japan, China and South East Asia generally as well as the US and Europe.\u00a0 With shops, restaurants and cafes now open there is a real buzz here again.\u00a0 We are also starting to receive enquiries from international students planning to return to their universities in September\/October.<\/p>\n

Our Dickens Yard (Ealing) and Kew Bridge branches are both very busy, with high numbers of enquiries from UK professionals and increasingly from overseas professionals too.\u00a0 Many apartments are once again achieving full asking rental or close.\u00a0 The uptick in demand has been really noticeable over the last month or so as businesses return to full operation and applicants feel ready to commit to a new home and perhaps a fresh start.\u00a0 The Green Quarter in Southall<\/a> has been exceptionally popular and we are eagerly waiting for the next phase to complete in late June.<\/p>\n

Japanese corporates return to London<\/strong><\/p>\n

We\u2019ve seen a sharp rise in rental demand from Japanese corporate tenants<\/a> over the last month and in fact our Japan Desk has just had its best month ever in terms of the number of transactions completed.\u00a0 The level of enquiries we are seeing is mainly due to word-of-mouth recommendation.<\/p>\n

\"\"It seems that the UK\u2019s current success in combatting Covid 19 is having a positive effect on the attitude of Japanese professionals and their families who are considering a move here and Japanese expats are proving keen to move to London and resume career plans that have been put on hold over the last year.<\/p>\n

White City Living in West London<\/a> remains a very popular development and we have been securing a number oftenancies for Japanese professionals there.\u00a0 Dickens Yard in Ealing also remains highly sought-after,\u00a0 as\u00a0does\u00a0Filmworks<\/a>, also in West London, and we have already agreed several deals here.\u00a0 In East London, 250 City Road in Shoreditch<\/a> has also quickly become a sought-after development.<\/p>\n

International students planning their move to London for the autumn term<\/strong><\/p>\n

Many of our branches are starting to see enquiries coming in from international students who are planning to return to their universities in the autumn.\u00a0 We will keep you updated as progress continues.<\/p>\n

\u00a0<\/strong>Ensuring your rental property lets quickly<\/strong><\/p>\n

For many investors who bought an investment property off-plan and completed the purchase recently, the last year has been difficult. The rental market<\/a> has been incredibly competitive and landlords have had to steer their way through one of the most challenging periods any of us have ever seen.\u00a0 The advice and support of an experienced letting agent has been vital.<\/p>\n

And now, with the property investment market<\/a> thriving, we are again seeing a surge in interest from international investors<\/a>.\u00a0 So accurate, up-to-date advice remains as essential as ever.<\/p>\n

One of our strengths is that, as well as being sales agents<\/a>, we have over 60+ years\u2019 experience in the London lettings industry, so we can offer expert advice on letting and managing your property<\/a> too.\u00a0\u00a0Few London estate agents can offer this comprehensive level of support.\u00a0 We offer a complete property investment package:<\/p>\n