The London rental market – November 2017

Corporate and professional tenants continue to demand the very highest standards when it comes to their home. They expect all their boxes to be ticked – location, high spec and of course, amenities. This luxurious, five-star lifestyle is exactly what London’s ever-expanding landscape of new developments offers. And to meet this growing need, there have been a number of developments (or new phases of apartments) launching, from Goodman’s Fields and One Tower Bridge in the City to Camden Courtyards in NW1, Nine Elms Point near Vauxhall and the latest phase of Dickens Yard in Ealing.

It’s all about affordable luxury. Wherever in London a tenant wishes to live, there is a development with the amenities they wish to have at a rent that suits their budget. Developers continue to raise the bar with facilities such as a 24-hour concierge, gym, pool and even a ‘spa’ being viewed as ‘essentials’, and subsequently tenants are happy to pay a little extra rent to have them conveniently located on site.

And as London gradually shifts to the German model of lifestyle where being a long-term tenant, rather than a homeowner, is the norm, the market for these luxurious but affordable properties continues to grow. In fact, PwC has carried out research which reveals that 60% of Londoners, the so-called ‘Generation Rent’, will be renting a property by the year 2025. This compares to 2000 when 60% of Londoners owned their own home and only 40% rented.

As a specialist in residential lettings, we have the experience to match each tenant to a property that suits their requirements and as many of our lettings offices are located in some of these popular developments, from London Dock in East London to Nine Elms Point in South London and Fulham Reach in Hammersmith, we are in exactly the right locations to offer the best selection of properties to tenants. This is where the greatest rental demand and therefore the greatest growth potential lies for landlords.

If you are in the process of purchasing a property in a new development, please talk to one of our managers who can advise you on finding a good tenant and provide a free rental valuation.

City, Docklands and East London (City, Canary Wharf and Wapping/London Dock)

Our new office at London Dock opened this month, offering full letting and property management services at this fantastic new development. We have been very busy taking on new instructions here, while enquiries from applicants are increasing daily. With 22,000 ft² of amenities, including a swimming pool, squash courts, gym, spa and business centre, the development really is a game changer in terms of residential accommodation in London. The response has been excellent and Manhattan, one, two and three bed apartments are all letting very quickly. Other new developments locally, in or close to the City and Wapping, where apartments are letting exceptionally well include Goodman’s Fields in E1, One Tower Bridge and Blackfriars Circus, both in SE1 and Landmark Place in EC3. All offer excellent on-site amenities, driving up standards generally throughout the private rented sector in London. In Canary Wharf, flagship development Royal Wharf in E16 continues to attract renters who are keen to move in early while the development is still under construction and rents are lower than they will be next year. Currently, asking rentals are upwards of £300 per week for a one bed apartment, upwards of £375 per week for a two bed and £450 – £475 per week for a three bed. Also launching now is the next phase of London City Island and this too is attracting much interest.

Looking ahead to 2018, we expect the opening of Crossrail to have a huge effect on tenant demand in East London and we are already seeing an increase in enquiries for properties located near Crossrail stations such as Woolwich, Custom House, Whitechapel, Liverpool Street, Farringdon, Stratford and Forest Gate. Tenants moving to these areas now can find lower priced rental properties before rents rise when Crossrail is due to start in December 2018.

South East London (Surrey Quays and Greenwich)

Our Surrey Quays office has had an excellent response to the release of the final phase of apartments at Marine Wharf and has very limited stocks due to the high demand. We are now looking forward to the release of apartments at Marine Wharf East which are due to complete towards the middle of next year. Nearby in SE16, we have also had a very good response to the apartment at Bermondsey Works. Again we have let all our stock and are now looking for new instructions. Over in Greenwich and Woolwich, Waterfront at Royal Arsenal Riverside has just launched and demand is very good, with Manhattan apartments achieving upwards of £310 per week, one bed apartments upwards of £330 per week and two beds over £400 per week. The development will benefit from the opening of its own on-site Crossrail station in December 2018.

Central London (Kensington, Knightsbridge and Hyde Park)

Rental demand in Kensington is strong and properties are letting quickly. Well-presented one and two bed apartments in new developments or recently refurbished buildings continue to be the most sought-after. Applicants have high expectations. A high spec finish is a ‘must’ so developments such as 375 Kensington High St remain extremely popular – we often run out of stock there but with a number of similarly luxurious, contemporary apartments coming to market now, generally we have good availability to meet demand. Older, unmodernised properties can stick though as tenants expect showhome standards and will not settle for less. Generally tenants’ budgets are good and one bed apartments are achieving up to £550 per week while two bed apartments are achieving up to £750 – £800 per week. The last few weeks have been incredibly busy at our Knightsbridge office, in fact we recently organised six ‘move ins’ on the same day! We are seeing increased demand for unfurnished properties, which are not usually as in high demand as furnished properties. One bed apartments are achieving £425 – £525 per week while two bed properties are achieving £600 – £850 per week. One of the most notable developments to launch recently near our Hyde Park office is Camden Courtyards in NW1. We have had several units available here and all have let immediately.

West London (Ealing, Kew/Brentford and Hammersmith)

Rental demand remains strong at the Dickens Yard development in Ealing, with the new Vista apartments continuing to attract plenty of interest from applicants. We are seeing a lot of demand from relocation agents acting on behalf of overseas professionals, from Europe but also from Japan and the US. Apartments are letting quickly and for full asking rental. Nearby at the Kew Bridge development in Brentford, rental demand has been so high that we are now very low on stock and actively looking for new instructions from landlords. As the development’s reputation grows, demand goes from strength to strength and apartments here always let very quickly and for full asking rental. One and two bed apartments have also been letting very well at Fulham Reach in Hammersmith where demand remains consistently high. We are currently talking to landlords who have bought new apartments in the latest phase at Sovereign Court which will be completing in the next few weeks.

South West Central London (Imperial Wharf and Nine Elms)

Enquiries for rental apartments at Nine Elms and the surrounding areas are increasingly rapidly. Young professionals working in central London are starting to realise how convenient this location is and for many the commute is just a short walk although there is also a convenient bus service and Vauxhall tube station is nearby. We are currently taking on new instructions here and the response from applicants is excellent, with properties letting quickly and for very close to asking rental. Rental apartments at Imperial Wharf and Chelsea Creek are always sought-after, usually one and two bed apartments which are popular with professionals and corporate tenants working in the City or central London. In fact we have let all our stocks of one bedroom properties at the moment and are currently looking for new instructions. This month we have also let two stunning penthouses with river views demonstrating that the development also remains a firm favourite with wealthy, international individuals.

North/North-West London (Highgate, Hampstead and Colindale/Beaufort Park)

Rental demand in Highgate has been very good over the last few weeks, both for one and two bed properties and larger family homes. While the market has slowed recently for larger properties, as is usual at this time of year, demand remains high for one and two bed apartments, particularly new builds or flats that have been renovated to a high spec. Developments such as Highbury Stadium Square and Barnsbury Place in Islington are among the most sought-after. As well as the usual one year tenancies, we are seeing an increase in the number of tenants looking for shorter, six-month tenancies, either because they are waiting to buy and move into their own property or are refurbishing an older property. We are seeing fewer Europeans relocating to Highgate at the moment, but this is more than compensated for by the increasing numbers of professionals from the US and Australia moving to the area.

Our Hampstead office has also been receiving a lot of enquiries from applicants, particularly for one and two bed apartments priced up to £400 per week. The rental market is price sensitive though and, with a good choice of rental properties available, applicants expect to negotiate with landlords. Many applicants are looking for apartments in new build developments and with few available in Hampstead itself they opt for neighbouring areas such as Maida Vale and Kilburn. The rental market in Colindale remains strong and our Beaufort Park office has been busy handling enquiries from applicants looking for a rental home in this popular development. After a successful student season, young professionals once again make up much of the current rental demand, some of whom are moving here from other parts of London and some who are international applicants. Budgets are good and properties are achieving close to asking rental.

If you have a property to let in any of these areas, or would like a free no-obligation rental valuation of your property please contact us. For more London rental market news and updates, subscribe to our newsletter.