Analysing the London lettings market performance in Q4 2016, the agent sees upward movement in the number of renters from Western Europe, signalling recovering confidence in the capital's potential in spite of external political influences.
Other key findings include a continuation of the trend from Q3 2016, which saw average rents fall across most parts of London. Small flats in Zones 1 and 2 were least affected, while the effect in Zones 3-6 was more pronounced than in Q3 due to the impact of declining the average rents for houses. Gross yields, however, remained largely consistent with Q3 figures.
In addition, the publication of the White Paper on housing earlier this month signalled change, bringing with it a welcome encouragement of the Private Rented Sector, as well as greater security for renters through the increased availability of long-term tenancies.
Sarah Tonkinson, Foxtons PRS Director, commented: “We see the policies set out in the White Paper as a positive start to increasing availability of affordable homes and improved lettings conditions for renters. The developing Private Rented Sector will make a substantial net addition to London's rental stock and provide much-needed long-term tenancies with emphasis on providing high-quality service and accommodation, in line with the new White Paper guidelines.”
