Lettings Update June 2017

Demand drops, new instructions are flat. Why?

• Pre/Post Election fears
• Political uncertainty.
• However, weak pound, low interest rates = foreign investment, bank of mum and dad.

Picture of London

• Greater London Average rent May 2017 £1,502 Average rent April 2017 £1,519 Monthly variance -1.1% Average rent May 2016 £1,548 Annual variance -3.0%

Glass Ceiling?

• In May 2017, average rental values in London (£1,502) were 66.7% higher than the UK (£901). The gap between London and the rest of the UK was lower than May 2016 (71.3%) and comparable to May 2015 (70.8%)

Five London boroughs with the highest average rent

• London borough Average rent May 2017 Westminster £2,042 Camden, City of London £1,884 Lambeth £1,864 Chelsea, Fulham, Hammersmith and Kensington £1,804 Tower Hamlets £1,663

Five London boroughs with the lowest average rent

• London borough Average rent May Croydon £1,033 Barking,Dagenham & Havering £1,180 Redbridge & Waltham Forest £1,207 Bexley and Greenwich £1,244 Kingston upon Thames, Merton and Sutton £ 1,303

Borough's doing the best

• Brent 2.2% Barking, Dagenham and Havering 1.2% Chelsea, Fulham, Hammersmith and Kensington 0.2% Hounslow and Richmond upon Thames 0.1%

London borough Annual variance

• Croydon -11.8% Lambeth -9.8% Camden, City of London -6.9% Haringey and Islington -6.5% Kingston upon Thames, Merton and Sutton -6.5%

What do other landlords think?

• Property investment: 76.2% of landlords have no intention of expanding their property portfolio in 2017, with 10.5% saying that they'll reduce the size of their portfolio Relationship with tenants: 90% of landlords stated that they were "very happy" (55%) or "quite happy" (35%) with their current tenants

Landlords views continued

• Rental prices: 31.1% of landlords don't plan on increasing their rents in the near future Reasons for rental price changes: The primary reason stated for any increases in rent was to keep up with inflation and market forces (55%); the second was because of increased tax liability (21.3%)

Landlords

• Concerns for the next 12 months: 31.4% of landlords said that more potential changes to legislation was a concern

Any questions?

Neil Mangan