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London Lettings and the Rise in Rental Values

9th November 2018
With political uncertainty playing a key role in the London property market, the Lettings market has been directly impacted by fewer ‘buy-to-let’ transactions. While an increase in Tenants staying put and renewing their contracts shows us that they hope to ride out the storm, it is certainly not a case of ‘doom and gloom’ for London Lettings. With the slowdown in sales activity we’re seeing a rise in buyers turning into tenants. This has been good for the Lettings market, although combined with a fewer available properties the demand continues to outweigh supply increasing competition from prospective tenants. What does this mean? For the first time in recent years we’re beginning to see a rise in achieved rental values with over 66% of the deals done during October achieving the asking price or above. This is testament that the London rental market is holding up and provides a financial solution for any vendors looking to wait it out while also getting an income on their assets. Growing our stock levels has been our main aim with our Associate Director, Diana Tran, leading the way with a number of key listings ranging from two-bedroom apartments to 20,000sqft detached mansions. Increased stock levels ensure that we have the best options available to service our applicants. Catherine Che, Head of our China Desk, has been essential with her Chinese client base, they continue to invest in London property not only for themselves but also for buy-to-lets. With a growing demand for new build developments that on-site amenities such as concierge, security and leisure facilities being the yields are very rewarding. London is one of the world’s top destinations for work, corporate relocations the capital continues to grow, although at a slower pace than previous years. We are seeing more activity from Asia and across the pond; for example, a Brazilian family recently relocated for a large International Bank from New York to a penthouse apartment in Knightsbridge on a three-year tenancy. Their actions tell us that London is still as popular as ever and will continue to attract professionals from all over the world. Mohamed Zaghloul, our Head of Middle East Desk, visited to Dubai for Cityscape Global, the world's largest networking exhibition and conference on property development. There he made some key contacts with prominent Dubai developers helping to continue strengthening our relationship with the Middle East and our affiliates at Gulf Sotheby’s. James Somers MARLA, Head of Residential Lettings  

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