London prime lettings market is on the rise, according to new reports
Some of the prime property areas in London are seeing a rise in lettings prospects for the year ahead after a slight upturn in activity, according to new reports, which suggest that the places outside the centre of the capital have been those which have been rising best.
The report from Benham & Reeves Residential Lettings suggests that in the last few months, it has been the suburban areas away from the city centre that have attracted the most demand from tenants, which has in turn meant that rent rises here have been higher than in most areas.
The reason for this change is the simple fact that those who are looking for rental properties in London are trying to save where possible, and they know that they can get more for their money when they move even a few miles from Central London.
According to the report from Benham & Reeves, one area of London that really exemplifies this overall trend is Colindale in North London. This suburban region of the capital has seen a real improvement over the past few months, and its year-on-year rental rise is now at 4.7 per cent. Other areas north of Oxford Street, particularly those where there are new developments, are also starting to perform a lot better.
And it's not just rental price where those around Central London are finding themselves seeing improvements. According to the report, the average lease length in the Prime London market has climbed to around 17 months. This is longer than in recent years when it sat at below a year, which shows that new tenants are now prepared to stay for longer, which means that landlords and letting agents are seeing fewer void periods, and better returns, as a result.
"There is no doubt that landlords have had a tough time of late. Rising taxes and stamp duty rates have taken their toll. These latest figures, however, demonstrate that for those who are able to ride out the tough times, the market will eventually turn back in their favour," said Marc von Grundherr, the firm’s lettings director.