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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Latest Comments

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
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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Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH 13 Apr 2017

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