Rental Market Update- Q1 2018

The latest heat map for this quarter (Q1 2018) reflects the challenges the current market is facing. Most rental value increases are relatively minor, between 0-2%; only seven areas are experiencing moderate rental value increases of 2-4% and no areas are witnessing rental value increases of more than 4%. Most areas are showing either steady rental values or minor drops. The market is understandably difficult at the moment – Brexit uncertainty is weighing heavily on everyone’s minds when deciding where they should live and work. In addition, there have been a large number of new properties coming to the rental market and supply is currently outweighing demand.

The areas that are faring best are those that are historically popular and therefore, robust. Areas such as: Central London including Fitzrovia (W1T), the City (E1), East Finchley and Hampstead Garden Suburb (N2), West Hampstead(NW6), West Chelsea and in to Battersea (SW10) are understandably still in high demand. Areas that are showing surprising resilience are Wembley (HA0) and Epsom (KT17); this could be due to Wembley’s regeneration project that has attracted plenty of sports and media professionals to the area, while Epsom enjoys country living within easy reach of London and has appeared in the top 10 of Rightmove’s ‘Happiest Places to Live in Britain’ at the end of 2017.

For landlords, while it is a perhaps a difficult time, there are some positives to take from the heat map. Rents may be under pressure due to the current oversupply, but there are still a great deal of people looking to rent. On a daily basis, we are seeing a lot of applicants looking for good quality rental properties. Our advice to our landlord clients is always: ensure the property is of a high calibre, well maintained and offered at a reasonable rent, in the current climate this advice is even more valuable. As long as this is what you are offering, you are assured of finding a good tenant for your property and will fare well during this challenging time in the market.

If you would like to discuss how to make the most of your rental investments, contact a member of our team.