Characterised by stock shortages and high levels of demand
Although house prices look like they're on the way down, the local rental market is currently booming. Average rents grew by 11.5% in 2010, according to latest analysis from Savills research department. As a result, rents are forecast to grow this year by an average of 8% across London.
The uptake in the sales market has reduced the supply of rental properties available as accidental landlords returned properties to the sales market. Additionally, needs based family demand has persisted, pushing rental values up.
Winkworth's Lettings Manager Sarah Turner said: "The lettings market in Chiswick is, indeed, reflecting this new piece of research. Far more tenants than is usual for this time of year are looking for flats, particularly one and two bedroom flats - drawn here by Chiswick's excellent rail, tube, bus and motorway links. Second, we've seen a surge in demand from corporates with big budgets - their need is for family homes (Chiswick's schools make this an ideal spot) or high specification, low maintenance flats (with or without a river view) for high flying execs. Currently, everything correctly priced is let - and fast."
Borthwick's Simon Gale said: "The rental prices we are achieving are of a very good standard and stock is moving very fast for the right property. One/Two bedroom flats and houses seem to be the most popular at the moment due to low stock levels. We have also seen a rise in Short Term Lettings with a lot of business coming from corporate tenants."
OliverFinn's Christian Harper is more circumspect: "The rental market is good, not amazing and not booming. Get the price wrong and your property will sit like suet pudding, get it right and you may need to replace your doormat. I am extremely fortunate to live and work in an area that is so desirable and whilst this remains to be the case, we can all afford to keep increasing pricing until we reach critical limits or our neighbours under cuts us!"
"We expect to continue to see a growing number of tenants at all levels and from all age groups and walks of life," said Jane Ingram, head of lettings at Savills. "Renting is now considered a perfectly acceptable way of life in the UK, whether you simply can’t afford to get on the housing ladder, want to try an area before buying or need to rent out your own home whilst renting a bigger/smaller one or in a different area to be close to schools or loved ones."
March 7, 2011
