Prime London property lettings market showing signs of improvement
Some areas of the prime property lettings market in London are seeing an upturn with locations outside of the central part of the city most likely to see a rebound, according to new research.
Suburban locations are currently underpinned by a strong local market and those with improving transport links saw the biggest rent rises in 2016, the report from Benham & Reeves Residential Lettings suggests.
It signals out Colindale in north London which saw rental rises of 4.7% but also points out that some prime rental locations are also seeing growth such as new developments north of Oxford Street.
The firm suggests that even parts of prime central London which have suffered the most in recent quarters seem to have turned a corner and several saw average rental values increase by 4% or more.
A similar trend is widely anticipated in Wapping once new units in the eagerly awaited London Dock development begin to hit the market at the end of January.
The research also shows that the average length of a tenancy in 2016 was 17 months. In years past, the average was less than a year. So while landlords are not able to achieve higher rents, their overall income is higher thanks to fewer and shorter void periods, according to Marc von Grundherr, the firm’s lettings director.
‘There is no doubt that landlords have had a tough time of late. Rising taxes and stamp duty rates have taken their toll. These latest figures, however, demonstrate that for those who are able to ride out the tough times, the market will eventually turn back in their favour,’ he said.
‘We don’t want to be too optimistic just yet as things are still undeniably difficult for many amateur property investors but nothing could be as bad as 2016,’ he added.