Lettings Update London - May

Changes in the market

• Rents in London have dropped for a fifth successive month
• Average rent on 2 bed property is now £1273pcm.
• 14.8% Drop in overall rents. Biggest fall south of the river.
• People sitting on the fence, brexit/election - Sales down, as much as 41% (new builds empty).

Why?

• Oversupply of rental stock in new build heartlands (Battersea/Nine Elms, 28.1% more stock)
• Stronger rental demand in areas with limited new build potential
• Despite increase of stock in Central London 5%, rents in the prime market up by 2.5% - Got a spare few million quid?

5 Boroughs with the highest average rent

• Camden £2,099
• Westminster £2,095
• Lambeth £1,919
• Hammersmith/K&C £1758
• Tower Hamlets £1,702

5 Borough's with the lowest rent

• Croydon £1,036
• Barking, Dagenham & Havering £1,199
• Bexley & Greenwich £1,243
• Redbridge, Waltham Forest £1,251
• Harrow & Hillingdon £1,319

Borough's with the largest annual variance.

• Camden 9.8%
• Barking 1.8%
• Enfield 1.6%
• Ealing 0.1%

5 Borough's to avoid - biggest drop in rent

• Harring & Isling -7.8%
• Croydon - 7.6%
• Harrow & Hillingdon -7.2%
• Lewisham & Southwark -5.8%
• Lambeth -3.9%

Keep a tenant?

• Couples, no children 34%
• Couples, with kids 22.2%
• One Person 18.7%
• Sharing with other tenants 14.7%
• Single parents 7.3%
• Other 3.0%

Top 3 reasons for renting:

• Flexibility to move easy
• Property Location
• Easy of property maintenance

Any Questions?

Neil Mangan