London Rental Market – July 2015

The London rental market is going from strength to strength across the Capital. Our letting offices are busy with enquiries from corporate clients, both young professionals and families, while the student season is also in full swing with high numbers of enquiries as students look for rental accommodation in London ahead of the autumn term. Our own expansion plans are forging ahead and the last few weeks have seen the opening of two new offices – one in Fulham Reach, the other in Wapping, as we continue to expand our operations into areas where tenant demand is very high.

Central

We’re seeing a post-election spike in demand for rental properties in Kensington, particularly from corporate clients with increased numbers relocating from Europe, the US and Asia and wanting Kensington and Knightsbridge. Enquiries are up for larger three, four and five bed apartments and houses with rents from £2,500 per week up to £15,000. Applicants have good budgets but the lack of stock means it can sometimes be difficult for them to find the right property. Demand for larger properties in the £2,000+ per week price bracket is around 25% higher than over the same period last year.

Enquiries are also strong for smaller, very high spec apartments priced at up to £1,000 per week. With such high demand across the board, we are starting to see shortages of some types of property. The student season is in full force too, with many looking earlier than last year when some left it too late, only to find the best properties had already been let.

Rental demand in West London is also strong. The launch of the latest phase of apartments at Dickens Yard in Ealing, the Fitzroy Apartments, is attracting a lot of interest and we’ve been seeing high demand well ahead of the launch. Properties here are mainly one and two bedroom apartments so they appeal particularly to young professionals.

City, Canary Wharf, Docklands and East London

Demand for rental accommodation in the City is, as always very buoyant and we have good levels of stock to meet demand from tenants. Interest in very high specification, ]five star developments such as The Heron continues to grow. Developments like this are popular amongst City employees and professional contractors looking for a bolthole during the week. They’ll often choose this option if they are working on an extended project in the Capital, maybe for up to a couple of years but don’t want to move here permanently.

These applicants often live in another part of the country but typically choose to rent perhaps a 300-410 sq ft studio for £450 – £575 per week as a base during the week, rather than stay at an hotel or a serviced apartment. The apartments are high specification and secure with their own concierge and great amenities, so it’s an easy option and more comfortable than an hotel. And it’s much cheaper than a serviced apartment which would cost £1100-£1200 per week. This is a growing trend and one we’re also seeing at developments like Avant-Garde in Shoreditch and The Eagle in Old Street.

On the fringe of the Square Mile is the new luxury residential development Cityscape. We have had several new instructions here recently which all let immediately. Within close walking distance to Aldgate East Underground station, a one bedroom apartment is attracting rents from £500 per week and upwards of £600 per week for two bedroom apartments. The development is ideal for corporate tenants looking for rental accommodation within walking distance of the financial district.

As always at this time of year, we’re also very busy with students at the moment and are finding that international students in particular have very good budgets to spend on City rental accommodation.

North/North West London

We’re continuing to experience excellent rental demand at Beaufort Park in Hendon, although we do now have shortages of smaller properties – studios, one bed and Manhattan apartments. A one bed apartment usually lets in under a week and typically achieves £1200 – £1300 per month and we have a waiting list at the moment.

Most tenants enjoy living at Beaufort Park as the development offers the complete package – a high spec finish, usually some outside space such as a balcony, and amenities such as a gym and shops. We’re seeing an increase in the number of applicants moving to Beaufort Park from outside London, relocating to the Capital with work or taking up a new job.

We’re looking forward to the launch of the new Constantine, Carlton, Carvell and Chapman apartments later this year, which we hope will ease the pressure on stock levels. As ever we are always looking for new instructions.

In Hampstead, rental demand is extremely strong, both from young professionals looking for one or two bedroom apartments and from families looking for larger homes. At this time of year, most applicants have a garden high on their wish list and if that is not possible, then a location close to the Heath.