Rents plateau after two quarters of growth

Rents plateau after two quarters of growth

After two quarters of strong growth in rental values, rents across the capital finally started to plateau. Analysts have predicted that this lull may only be temporary, however.

Most parts of central London saw rents remain at the same level or saw increases of less than two per cent. These figures echo market conditions across most of east and south London which also saw rental growth stall after a long period of growth. Notable exceptions are the Covent Garden area, which is seeing rental price growth as the area becomes a more established residential destination, and the trendier parts of Hackney which continue to attract young, affluent professionals.

Conversely, parts of north London saw price falls as seen in the previous quarter. Continuing issues on the Northern Line and the closure of the interchange at Tottenham Court Road during Crossrail works have put off many would-be commuters.  With the reopening of Tottenham Court Road's interchange with the Central Line, it will be interesting to see if demand picks up in 2016.


Marc von Grundherr, Lettings Director of Benham & Reeves Residential Lettings, who conducted the reseach, said: “Successive Budget Announcements have seen many landlords' tax advantages disappear while regulations increase.  With stamp duty attracting an extra three per cent from April, we anticipate supply will fall as amateur landlords exit the market or seek out other asset classes. When supply falls, rents will invariably go up. This will be the last chance for many tenants to move into a nice apartment while rents are plateauing and there is a choice of properties.  Once Osborne's measures really start to be felt, the market will change.”

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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NathanG
NathanG 05 Jul 2017

McDonalds, for example, have been purchasing their real estate on prime locations for years. If something happens to the company they'll have invaluable assets that will be able to save them. We might

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Jonah
Jonah 04 Jul 2017

Graham: surprised to see you cite the "extra tax liability" as capping out at ?560. It doesn't - the extra tax is exponential, as it is levied on the income (i.e the inflating level of rental income you...

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Dianne Griffen
Dianne Griffen 29 Jun 2017

Be very wary of anyone bringing you deals that they have ?found? and want to ?sell on to you? or ?joint venture? with you on ? you need a proper legal contract for this, involve a RICs surveyor to confirm...

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jason hadzikostas
jason hadzikostas 28 Jun 2017

The most important thing is a budget. Students have to manage their spendings in food, house maintenance, books and many other things. According to me, student Studios are the perfect option for them as...

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SecomTech
SecomTech 22 Jun 2017

AT Last...This was discussed years ago and there was a move towards landlords registering their bad tenants on a database..(can't remember where) It seems a logical step though our leaders will probably...

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Bertrand
Bertrand 02 Jun 2017

How about the Welsh Govt introducing a scheme to protect landlords against "rogue" tenants who are then taken to court for criminal damage to the properties they trash. Pretty unlikely I suspect and politically...

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AmberMorris 25 May 2017

"Please don't pick a novelty tune-playing doorbell. They're not 'fun'. They're stupid." Laughed a lot to this. It's actually true, though.

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