It’s never been a better time to be a landlord in London. Across the Capital, the value of properties in all boroughs has soared, with many homes increasing by up to 20% depending on the location, size and specification.
Analysis across all 33 lettings branches at KFH shows that rents have risen by 8.9% in the past year with tenants now paying an average figure of £1,729 per month. With property prices at an all-time high, many young professionals are finding it difficult to get a foot on the ladder and this along with the number of foreign visitors in the Capital has led to a 13% rise in the number of tenants looking to rent a home here. Tenants who are either not yet ready to buy or simply don’t want to, are locking in for longer and the average length of tenancy has risen by 1.2months in just one year. Tenants are therefore able to secure against rental increases for longer, while landlords are equally satisfied as a longer tenancy guarantees their rental income.
We saw many investor landlords enter the market towards the end of 2013 / beginning of 2014 and as a result we’ve seen a rise in stock levels with healthy levels of demand among tenants to match. Because of a wide range of choice available on mid-range properties, rents achieved are often at asking price or just below, however premium homes are currently often achieving above asking price with tenants happy to pay more for the location and quality of the interiors.
While the lettings market is seeing some good activity and is currently very well balanced in terms of supply and demand, it still remains important that to gain a good market rent, you must ensure that your property is of high quality, to appeal to the widest audience possible.
Source: All stats from Kinleigh Folkard & Hayward (June 2014)