More rental stock creates choice for renters in Hendon

Rental stock shortages and huge demand from workers returning to their London offices have been a major factor in record-breaking high rents over the last few years, but as 30-plus new property developments across London rolled out completions in the first quarter of 2024, we are now seeing improved stock levels which is stabilising rents and reducing pressure on London’s renters.

According to UK property portal Zoopla, rental growth slowed in the last twelve months and now stands at 6.4%, down from 16.1% a year ago. This is consistent with what we are seeing at our North-West London branches with exceptionally high tenancy renewals and rent increases more in line with inflation.

A recent Rightmove report says the average number of enquiries agents are receiving for every available rental property is currently 11 (May 2024). This does not compare with the average 24 applicants per available property that we are recording across our 21 London branches. We are also seeing more renters sharing accommodation to soften the costs so, demand for 2 bedroom apartments is through the roof right now.

Hendon & Colindale rentals

More people have returned to their workplaces and after the Pandemic, long commutes are now a real turn-off so the location of a property which has become the number one priority again. Homes within 10-15 mins walk of a Tube or Train station that runs a frequent and good service have been seeing extraordinary demand.

Enquiries for rentals in Colindale and Hendon started the year on an all time high with waiting lists for smaller units to become available but with the Northern Line underground about to undergo extensive planned renovation for 4-6 months, we do expect to see a natural reduction in enquiries until the works are completed.

We eagerly anticipate the first completions at Silkstream, Berkeley’s brand new development in Hendon. With first completions due in Winter 2024, property investors can expect the same levels of success enjoyed by Berkeley’s nearby scheme, Beaufort Park, which we view as an important template for local growth and prosperity. Both schemes share similar advantages in terms of positioning, local amenities, build quality and rental demographic.

New-build properties with sustainability and lots of green space will always attract higher rentals than other types of similar sized properties. This is mainly because Hendon’s housing stock is post-war and most stock remains unmodernised, so Silkstream offers an excellent investment opportunity with good rental yields of 5 – 5.6% and we expect it to be extremely successful.

We are currently achieving very good rents at nearby Beaufort Park (May 2024) where we have had a branch on-site at the development since it opened in 2006. Rents have increased 22% since 2019. Studios are achieving £1,100 to £1,400 per month; 1 Beds £1,600 to £1,800 per month; 2 Beds £1,900 to £2,400 per month and 3 Beds are achieving £2,800 to £3,200 per month.

We would very much like to hear from anyone with a property completing or becoming available for let soon in Hendon or for a free rental valuation at upcoming Silkstream.

We also have Chinese speaking staff who are here to assist the growing communities who are discovering Hendon and Colindale as important rental hotspots.