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Across London, enquiry levels continue to rise but we are continuing to see shortages of good rental properties, in fact we could let most of our properties many times over as demand continues to outstrip supply.\u00a0\u00a0 We simply need more new instructions!\u00a0 It\u2019s a key issue being experienced at all of our 19 London branches and one that we are working hard to overcome.<\/p>\n
The reasons are pretty clear.\u00a0 Thanks to the opening up of international air travel, the last few months have seen large numbers of overseas professionals and wealthy students return to London, having stayed away during much of 2020 and the first half of 2021.\u00a0 Because of the pandemic, building of new homes<\/a> slowed so some properties that should have come to market, have been delayed.\u00a0 Even the Government has not met its own target and the media is reporting a huge shortfall of homes which means people are forced into renting.<\/p>\n To add some context here, in January 2019 we had an average of 24 applicants for every available property. Last month, we had an average of 97 applicants per property. This is truly unprecedented in our 60+ years of business!<\/p>\n Many renters are now waiting for properties that will not be available until March or even April, such is the current shortage of rental stock.\u00a0 In the meantime they are prepared to live in short let<\/a> accommodation or even a hotel, while they wait.<\/p>\n Professionals and students who returned to London over the last year and took out a new tenancy, when rents had dropped, are now choosing to renew at the end of their current lease.\u00a0 But market conditions have changed dramatically so many landlords could now be considering an uplift in rent on renewal.<\/p>\n A word of caution here though.\u00a0 With the rate of inflation high, in December it was 5.4%, and utility bills seeing increases upwards of 30%, I would urge landlords to take consideration of the running costs their tenant is now having to absorb and ensure affordability before hiking up the rent. Please talk to our branch staff if you need any guidance on this.<\/p>\n The current rental market is complex and fast-moving, so, if you are a landlord<\/a> due to complete on a residential property in London in 2022, how do you decide on which letting agent to use to help you achieve the highest rental income?\u00a0 It can be a difficult decision.\u00a0 There are hundreds of lettings agents in London<\/a>, so what experience and expertise should you expect them to provide?<\/p>\n Currently, a letting agent should be able to find you the right tenant within 7-10 days.\u00a0 They should have extensive experience in lettings, not just sales, and they should have good local expertise with offices that are nearby your property.<\/p>\n Their services should include help with the initial handover of the property if necessary, professional furnishing services<\/a> and property management<\/a>.\u00a0 They should have extensive contacts amongst top international companies based in London to ensure they can find you a professional tenant – quickly.\u00a0 Any longer than a week or so and they aren\u2019t the right people for the job in this buoyant market!\u00a0 And the best companies also offer full accounts services too.<\/p>\n We also work closely with London\u2019s top developers and have on-site branches in many leading residential developments \u2013 exactly where most professionals wish to live \u2013 so we\u2019re their \u2018go to\u2019 lettings agents for each development.\u00a0 And of course, the agent should be a member of Propertymark, the property sector\u2019s professional body.<\/p>\n These are just some of the ingredients you should look for in choosing an agent for your rental property but please get in touch with any of our London or international offices<\/a> should you wish to discuss our services.<\/p>\n Our City<\/a> and East London branches<\/a> have had a very positive start to the year, with very strong demand. \u00a0We are seeing a rise in the number of professionals relocating to East London with their fintech, tech, banking and pharmaceutical companies, as well as those working for start-ups.\u00a0Throughout East London we continue to see shortages of stock.\u00a0 New residential developments<\/a> completing soon will help to ease the situation a little.<\/p>\n At 250 City Road in Shoreditch, enquiry levels are high but stock levels are low, with no significant new completions due until later in the year and all current tenants renewing their leases.<\/p>\n Our West London branches<\/a> are also experiencing the same shortages of stock and we are often receiving multiple offers on a single property.\u00a0 Here too, applicants are moving into short-let accommodation while they wait for a property to become available, which may be a couple of months.\u00a0 New developments<\/a> are launching over the next few months \u2013 such as Sibley House, the new phase at The Green Quarter in Southall (a Berkeley Group development), Western Circus in Acton W3 (from Barratt London), and Hayes Village, a new Barratt London development on the site of the former Nestle factory.\u00a0 Interest from applicants is growing as we await completion of these apartments.<\/p>\n At Fulham Reach in Hammersmith<\/a>, our branch is extremely low in stock and again, most current tenants are renewing their leases so there is not enough new stock coming to market. Many new applicants are agreeing a new tenancy simply based on a video tour, such is the need to move quickly to secure a rental property in the area.<\/p>\n Our White City branch<\/a> next to Westfield London has very little stock as there are no new completions due yet.\u00a0 Here, renewals have been high with corporates and wealthy students our highest demographic.<\/p>\n Beaufort Park in Colindale<\/a> is also experiencing strong demand but supply to limited and most existing tenants are renewing so there is only a minimal turnover of tenants.\u00a0 There just aren\u2019t enough properties to meet demand at this ever-popular development.<\/p>\n Over in Highgate, properties are also letting very quickly, some after only a video tour.\u00a0 Highbury Stadium Square<\/a> and Woodberry Park<\/a>, on the fringes, remain very popular and we have waiting lists of tenants for these developments.\u00a0 \u00a0We are expecting a new phase to complete at The Clarendon, in nearby Hornsey, from June, and further new apartments at Woodberry Park in the next couple of months.<\/p>\n If you are a landlord with a tenancy due to end soon and would like advice on how to maximise the rental, please get in touch with your local Benham and Reeves<\/a> branch where our teams can advise you on current market conditions and provide a free valuation of your property<\/a>.<\/p>\nA new kind of normal now<\/h2>\n
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This \u2018return to normal\u2019 has created huge pent-up rental demand, with well-presented flats being snapped up as they become available \u2013 and in many cases before they officially come onto the market.\u00a0This is because of the waiting lists we currently have all over London. Currently, the most demand is for rental properties in Tube fare zones 2 to 5 but prime central London has also picked up and our Kensington<\/a> and Knightsbridge<\/a> branches have been doing brisk business. And while there are some new apartments completing in residential developments in outer central zones, supply is not enough to meet this exceptional demand from renters.<\/p>\nMost tenants renewing their leases<\/h2>\n
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Tenants know that there is very little available to rent right now so their best option, financially and practically, is to save themselves the hassle and just stay put.\u00a0 This, in turn, is also reducing the amount of stock coming back on the market, adding to the scarcity of rental properties<\/a>.\u00a0Most tenants seem to have fairly good budgets.\u00a0 Many who have moved home over the last 12 to 18 months have found good deals but leases renewing now and over the next few months will generally be at higher rents than for some time.\u00a0 So rents are starting to balance out and are at a level between what renters are willing to pay and what they can afford to pay for their London accommodation.<\/p>\nChoosing a professional letting agent to let your rental property<\/h2>\n
Demand for rental accommodation in London<\/h2>\n
The City and East London<\/h2>\n
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Merino Wharf, the latest building at London Dock in Wapping, is due to complete soon and we already have some new instructions here.\u00a0 We expect a Manhattan apartment at Merino Wharf to achieve \u00a3550 – \u00a3575 per week, a one bed \u00a3625 – \u00a3675 per week and a two bed \u00a3800 – \u00a3900 per week.\u00a0 We\u2019re also handling new apartments at Cashmere Wharf.<\/p>\nWest London<\/h2>\n
Central and South London<\/h2>\n
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In central<\/a> and South London<\/a> we are also seeing high demand and low stock levels, with tenants waiting up to two months to move into their chosen property.\u00a0 At Battersea Power Station<\/a> in Nine Elms, a new phase is due to complete from April while in March there will be new apartments completing at DAMAC Tower, which will help to ease stock shortages a little. We would very much like to receive instructions from landlords in any of the new Nine Elms schemes as we are experiencing very high demand and have good waiting lists.<\/p>\nNorth and North West London<\/h2>\n