The latest index has shown that the London rental market is on the up – the market is showing big signs of improvements – which is very good property news for the country.
Average rents in the hub of the London rental market fell by 0.3% in May and are down by 4.8% when comparing figures to the same time a year ago. The rate of rental value declines is slowing down as a new supply of rental stock coming to the market slows down alike. The declines are less marked in lower and higher brackets, so the results are very variant, depending on location and situation.
A spokesperson for the professional housing industry said: “At lower price points, this is the result of continued strong demand among younger professionals for lettings properties as well as the fact corporate accommodation budgets have been kerbed, boosting demand at lower price points.
“Meanwhile, above £2,000 per week, demand remains stronger due to uncertainty around the short-term prospects for price growth in the sales market as a result of higher rates of stamp duty.”
In last month’s results, it was found that the number of new rental properties coming to the market in the hub of London went down by 6% (again, compared to the same time last year).
“Relatively high stock levels have been a feature of the market since early 2015, as increased sales taxes and short-term uncertainty over pricing in the sales market prompted many would-be vendors to become landlords”, the spokesperson continued to explain.
The London housing market and the UK housing market as a whole is still keen to attract international investors to their real estate market. There is a lot of potential as well as a variety of spaces and properties to choose from, which can match up to any investment opportunity or idea.
It is important that as a buyer you are aware of the London rental market, how much people are paying for rent and so on. Again, as an investor it is important to stay up to date with rental property news – it provides thorough insight even if you are not thinking about renting your property/properties.
With London’s growing popularity and the large spectrum of properties in the real estate market, it isn’t a bad place to start as a property investor looking to get on the ladder and make some serious money.
Written by Gemma Smith