London landlords
Established landlords are driving up the quality of rental stock in central London.
Private landlords are facing competition from the more business-minded larger players with the means and will to invest in their stock and improve their properties to meet tenants’ higher expectations.
By refurbishing properties to a higher contemporary standard, offering more flexible terms and encouraging longer tenancies, traditional family-owned estates and big portfolio investors have made their stock more attractive to tenants.
In central London, relocation agents and corporate tenants are now actively seeking properties that are professionally managed, whether owned by large estates or private individuals as they are providing a quality service. This can help secure lucrative longer tenancies and reduce costly voids for the landlord.
Rental movements
Rents for prime London property have risen by 1.3% over the last quarter but are only marginally up by 0.6% over the year.
The recent growth was driven by South West and North West London where rents increased 2.0% and 1.5% respectively over the quarter. Rents fell in other areas including prime central London where rental values are down -0.3%.
Over the longer term, the South West and East of London are the only areas where rents are now above the peak levels reached in 2007. These areas offer the least expensive rents at £29 and £32 per sq. ft respectively.
Rents in prime central London, the highest in the capital at £62 per
sq. ft, still lag -3.2% below peak. In the most expensive core central areas, including Knightsbridge, rents are still -6.5% below 2007 levels. In prime central London, flats continue to outperform houses.
In the South East of England, rents rose 1.2% over the year, pushed up by demand from families who intend to relocate but choose to rent before committing to purchasing a home in more affordable locations outside of London.
