As one of Central London’s most highly regarded estate agents, we’re often asked to share our views — here are a few of our most recent pieces.

Unveiling the Resilient Chelsea Property Market

In the vibrant city of London, Chelsea stands out as one of the most coveted locations for property investment and rental opportunities. With its prestigious reputation and a host of desirable features, Chelsea attracts domestic and international buyers alike.

Let's take a closer look at the snapshot of the Chelsea property sales and lettings market, backed by the following statistics:

  • The highest value recorded by the Land Registry over the past 12 months was £6,875,000 for a flat and £32,500,000 for a house.
  • 72.5% of sales in the past 12 months were flats, and 27.4% were houses.
  • In the last 12 months, 91.1% of homes let were flats, and 8.9% were houses.
  • ​​The median rental price of houses in the last 6 months (Jan’'23 to Jun'23) is £12,609
  • The median rental price of apartments in the last 6 months (Jan'23 to Jun'23) is £4,412

 Chelsea Sales Market Stats

Nestled in the heart of London, Chelsea boasts an array of captivating attributes that contribute to its allure. This exclusive neighbourhood is renowned for its picturesque garden squares, green spaces, and impressive housing stock. The area also offers a wealth of premium shops, world-class restaurants, and unparalleled transport links, ensuring a convenient and luxurious lifestyle for its residents.

With the stage set, let's delve into the fascinating world of Chelsea's property market, exploring its desirability, recent market conditions, nature of demand, and the positive performance it has displayed in the past year.

Additionally, we'll examine the future outlook for Chelsea's real estate, shedding light on the opportunities that await property sellers, landlords, and potential investors.

 

The Desirability of Chelsea Real Estate

Chelsea's real estate market is synonymous with exclusivity and desirability. Its picturesque streets, beautiful architecture, and charming squares create an enchanting backdrop for premium living. The neighbourhood offers proximity to green spaces like the Chelsea Physic Garden and Battersea Park, while the renowned King's Road beckons with its high-end boutiques and trendy restaurants. Chelsea's excellent transport links further enhance its appeal, making it a highly sought-after location for property buyers.

 

A Stable International Market

Chelsea has long attracted domestic and international high-net-worth individuals seeking a London base, investment property, or a luxurious home. Its garden squares, premium shops, top-rated restaurants, and cultural activities make it an ideal choice for those looking for a refined lifestyle. The Land Registry recorded impressive sales figures, with the highest value reaching £6,875,000 for a flat and £32,500,000 for a house in the past year (1 Jul '22 to 30 Jun '23). This highlights the global appeal of Chelsea's real estate market.

 Chelsea Maximum Sales Prices

Facing Up to Recent Headwinds

Like any thriving property market, Chelsea has faced its share of challenges in recent years. Political uncertainties, economic fluctuations, and events like Brexit and the pandemic caused temporary disruptions. However, the Chelsea property market has exhibited resilience and adaptability by adjusting to changing circumstances, to present new opportunities for sellers, landlords, and investors.

 

Nature of Demand

Chelsea's property market experiences a diverse demand for both sales and lettings. In the past year, 567 property transactions were recorded in Chelsea. Sloane Avenue, SW3 emerged as the street with the highest number of transactions, reflecting its popularity among buyers. Flats accounted for 72.5% of sales, while houses comprised 27.4%. This varied mix of property types caters to a wide range of preferences and needs in the market.

 

Positive Performance

Chelsea exhibited strong performance in the past year, further bolstering its allure. The total value of sales during this period reached an impressive £1,257,281,564. The median sale price for properties in Chelsea stood at £1,513,941, with a median price per square foot of £1,485. These statistics underscore the sustained demand and premium prices associated with Chelsea's real estate market.

 

Lettings in Chelsea

 Chelsea Lettings Market Stats

Renting a property in Chelsea offers an opportunity to experience the affluent lifestyle and the neighbourhood's exclusive ambience. Over the last 12 months, 629 flats were let out, representing 91.1% of the total homes let. The top choices for renters included 1-bedroom flats (30.2%), 2-bedroom flats (24%), and 3-bedroom flats (24%). The rental values in Chelsea have increased by an impressive 16.7% in the past 12 months, reflecting the high demand and favourable returns for landlords. ​​The median rental price of houses in the last 6 months (Jan’23 to Jun'23) is £12,609, and that of apartments is £4,412 for the same period.

 

Future of Chelsea Real Estate (Sales and Lettings)

The future of Chelsea's real estate market appears promising. With its enduring appeal, resilient performance, and ongoing development, the market is poised for continued growth. With its strong international market and positive rental trends, Chelsea remains an attractive destination for property sellers, landlords, and investors.

 

Conclusion

As we conclude our exploration of the Chelsea property market, we are left in awe of the impressive statistics and undeniable allure that define this neighbourhood. Chelsea holds an unrivalled position in London's real estate landscape. Whether you are a prospective buyer, a savvy investor, or an aspiring tenant, the Chelsea property market promises a lifestyle marked by elegance, desirability, and limitless opportunities.

Why not contact our Chelsea estate and letting agents for free expert valuation or investment advice?

Request a Valuation 

 

Note: The following postcodes have been used to define Chelsea - SW10 0, SW10 9, SW3 2, SW3 3, SW3 4, SW3 5, and SW3 6.

 

A detailed view of the Knightsbridge property market
  • The highest value recorded by the Land Registry over the past 12 months was £26,500,000 for a flat and £36,950,000 for a house
  • 92.9% of homes let in the past 12 months were flats.
  • Rental values have increased by 11.8% in last 12 months

Knightsbridge is one of London’s most sought-after locations in the city, with its garden squares, green space, quality housing stock, premium shops and restaurants, and excellent transport links.

 

A desirable location

The exclusive properties attract domestic and global high-net-worth individuals looking for a London base, investment property, or home. With Hyde Park on the doorstep and cultural activities, it’s no surprise the highest property value recorded by the Land Registry between 1 July’22 and 30 June’23 topped £26,500,000 for a flat and £36,950,000 for a house (Source: Dataloft).

 Knightsbridge Sales Market Stats

Renting flats and houses in Knightsbridge is another way to live in the affluent location. Over the last 12 months, the Land Registry recorded the lowest monthly rental value at £2,448 for one bedroom and the highest at £43,333 pm for a four-bed on the 3rd floor in the opulent One Hyde Park (Source: Lonres).

 Knightsbridge Letting Market Stats

 

Moving past uncertain times

Over the last few years, the housing market has faced uncertainty from political turmoil, Brexit, tax changes, and the pandemic. These factors have caused fluctuations in the property market, and Knightsbridge has been no exception.

Prices are back on a trajectory, increasing by 0.8% in the last 12 months but still down 5.4% from 2018 – offering buyers the opportunity for a growing investment.

 

Housing demand

In Knightsbridge, 92.9% of properties are flats, and 7.1% are houses. In the last 12 months, Dataloft finds that 269 flats were let, with 30.6% being two-bedroom flats, 28.4% one-bedroom flats and 27.2% three-bedroom flats (Source: Dataloft).

Between Jul ‘22 and Jun ‘23, vendors sold 249 properties in the Knightsbridge area. In total sold properties, 80.3% of sales were flats, and 19.7% were houses, with Ebury Bridge Road, SW1W being the most popular for transactions (Source: Dataloft).

 

A positive performance

In the last year, data shows that Knightsbridge is a positive place to invest in for domestic and global buyers. With house prices selling at a reasonable price for prime London and in high demand from renters, investment landlords can expect positive yields and reduced void periods. Those looking for a London base or home can enjoy the growth from flat prices in the area.

 

International buyers

With cultural amenities close by and a welcoming community, Knightsbridge has had a long-standing international market. With the weakened pound, more international buyers are investing in the prime London location and seeing an impressive return.

 Knightsbridge Maximum Sales Prices

Over the last 12 months, the lowest sold price fetched £975,000, and the median sale price for property in the area is £2,178,603 compared to £2,097,548 the previous year (Source: Dataloft). With houses bringing an average of £6,261 pm and flats £4,331 pm – rising by 11.8% in the last year – there’s a good investment opportunity for international investors looking to take advantage of the current market.

International buyers also look to Knightsbridge for a second home to enjoy the proximity to London’s main attractions and transport links.

 

Future of Knightsbridge real estate

While the last few years have seen uncertainty in the property market – even in Prime London – we see a strong future for both sales and lettings. From 1 Jul ‘22 to 30 Jun ‘23, the total sales value for the area was £745,669,814, with 249 properties sold – the most since Brexit in 2016 spooked the super-rich from investing in prime London.

While properties here are at the top end of prime London, the rental market is buoyant, and investors can enjoy impressive returns.

In the coming years, we expect the market in the area to remain strong, backed by the fact flat prices have increased by 8.1%. With oil prices rising, we will likely see demand from Middle Eastern buyers. However, with upcoming general elections, we may hear of concerns from investors.

 

Final takeaway

Despite political uncertainty, international buyers looking for second homes and investments highly regard the capital city. With demand for rental flats high, and impressive yields to fetch, Knightsbridge makes for a sound investment for domestic and international buyers.

Contact Knightsbridge estate agents and lettings agents for a free and accurate property valuation today.

 

Request a Valuation

 

Note: The following postcodes have been used to define Knightsbridge - SW1W 8, SW1W 9, SW1X 0, SW1X 7, SW1X 8, SW1X 9, SW3 1, SW7 1.

 

The ‘How to Rent’ guide 2023: what landlords must know

What is the ‘How to Rent’ guide, why do tenants need it and how can you use it to your advantage when renting property?

  • Failing to give your new tenants a copy of the ‘How to Rent’ guide, or a link to it, can cause problems with Section 21 notices
  • 2023 has seen several changes to the guide, which must be noted and actioned
  • Landlords do not need to share the updated copy with existing tenants

The How to Rent guide 2023 what landlords must know image 1

 

What is a ‘How to Rent’ guide?

In March 2023, the Ministry of Housing, Communities & Local Government updated the ‘How to Rent’ guide for every landlord to share with tenants in the private rented sector.

The online document details the tenants' rights and responsibilities and the landlord's legal obligations. Thoroughly reading the ‘How to Rent’ guide 2023 will ensure you, the landlord, are up to date information for renting a property.

The How to Rent guide 2023 what landlords must know image 2

 

Changes to the 2023 guide

Each year there are changes to the guide, making each update a vital read for tenants and landlords. In 2023, there have been several significant changes to take note of and action as a landlord. 

Updates for 2023 include:

  • It is mandatory to have smoke and carbon monoxide alarms within the property where a combustible gas appliance is situated, excluding gas cookers.
  • Tenants can request reasonable adjustments to make their homes more accessible.
  • The landlord must organise the 5-year electrical check and have it carried out by "a qualified and competent person."
  • Landlords should not unreasonably prevent smart meters unless the tenancy agreement states tenants need permission to alter metering. 
  • Landlords must provide evidence that smoke and carbon monoxide alarms are in working order at the start of the tenancy. The guide states that it is the tenant's responsibility to check they are in working order throughout the tenancy. 

The How to Rent guide 2023 what landlords must know image 3

 

Sharing the guide with tenants

The most updated version is from March 2023, and you can find it here.

You must share the ‘How to Rent’ guide 2023 as a hard copy with the tenancy agreement or via email as a PDF. With the same link for each annual update, your tenant can keep updated with changes.

If you have a long-term tenant in place, you only need to serve them with the most up to date guide at the start of their agreement – you won't need to supply a new one with each update.

The How to Rent guide 2023 what landlords must know image 4

 

Failing to provide the guide

The guide is an important document that you must give to your tenants. If you fail to provide your tenant with a ‘How to Rent’ guide, you will be unable to repossess your property and serve a Section 21 notice – should you need to.

 

Landlord advantages

As a landlord, you can take advantage of the guide and use it as a checklist. Referring to the document shows all the legal documentation, licenses, insurance, and checks you're required to have. It will also ensure you're up to date with what a tenant can reasonably request.

For example, it may prompt you to:

  • See that your landlord's insurance is correct
  • Check the smoke alarms and carbon monoxide alarms are working
  • Make sure that you have all the required certifications and up to date documents, e.g. gas certificate

 

Required tenancy documentation

Bringing the documentation together at the start of a tenancy, and providing annual updates where necessary, are important tasks that require attention to avoid legal complications.

Documents you must share with the tenant, as outlined in the ‘How to Rent’ guide 2023, include:

The How to Rent guide 2023 what landlords must know image 5

 

Expert landlord guidance

From right to rent checks to providing correct documentation and inspecting properties, there’s much to consider when managing an investment property.

Whether you’re looking for expert advice from our team of Central London estate agents or to rent your London properties, we can help you manage your investment and get the most from it.

Contact the team today.

The Spring sales market in Prime Central London

A look at the prime Central London market as we enter a traditionally busy period in property – Spring.

  • The highest increase in activity in 2023's Q1 is Chelsea, with 25.6% more sold properties compared to 2017-2019.
  • In February 2023, the average asking price discount was 8.4%.

For the first three months of this year, we saw prime London's sales market stall slightly. However, even though the broader economic outlook played its part in falling London property sales, the housing market is now showing signs of returning to 2019 trends.

 

Sales market returns to 2019 trends

The latest London housing market data from LonRes shows that the number of properties sold is 33% lower than the previous year’s Q1 – 9.1% lower than the 2017-19 average1. The number of properties under offer is 10.5% higher than before the pandemic, indicating an increase in sales. More positive news, the number of new instructions is 23.6% higher than 2019 levels.

Despite a housing boom between 2020 and 2021, properties are selling for less, falling by 2.8% over the last 12 months. Although these numbers may seem like a significant drop, they are returning to the London house price trends of 20192.

The Spring sales market in Prime Central London image 1

 

There are more positive signs within the prime London sales market update. The number of deals within prime London properties is down compared to last year, and those under offer at £5m+ increased by 20% in the first quarter. This data shows confidence in sales rising in the top-end market in Q2.

The outlook of the economic and political environment – and interest and exchange rates – will undoubtedly influence prime Central London property prices in the coming months.

 

Prime London locations peak

St. John's Wood, Regent's Park & Primrose Hill are the best-performing neighbourhoods that record growth. Over three years, property price per square foot values in the area has risen by 14.6%. The highest increase in activity in 2023's Q1 is Chelsea, with 25.6% more sold properties compared to 2017-2019.

The data also shows how housing prices in prime London property locations have risen by 12.0% over three years, plus a 6.8% price increase in flats.

The Spring sales market in Prime Central London image 2

 

A return to realistic pricing

The LonRes data shows that if the property takes longer to sell, the more considerable the drop in asking price. In February, the average asking price discount was 8.4%. For properties that had been on the market for more than a year, the discount was 14.5%. This compared to 11% just six months earlier.

Price reductions can also be attributed to the fact that in winter 2022/23, there were limited properties on the market, leading sellers to inflate the value. Now, with supply increasing, sellers are lowering prices to stay competitive. Stamp duty and taxation changes also play a consequential role.

So what we’re seeing could be a return to more realistic pricing overall – a good thing for most agents who want to maintain a steady stream of sales and hit sales prices with accuracy: homes that sell in under three months have an average discount of only 4%3.

The Spring sales market in Prime Central London image 3

 

A positive outlook for the coming months

With new instructions the highest they’ve been since 2019 and an increase in top-end sales for Q1, the prime Central London sales market is looking strong as we move into Spring. This is a good indication of sales activity later in the year for prime markets, and if the trend for more realistic pricing continues, we may see fewer houses lingering on the market.

If you are looking to buy, sell, rent or let in the prime Central London area or would like some professional advice, we have property experts ready to discuss your next move.

Contact us to find out more.

 

References:

1. https://assets.lonres.com/newsletter/prime-london-market-report-spring-2023-lonres.pdf

2. https://assets.lonres.com/newsletter/Monthly-Briefing-March-2023.pdf

3. https://assets.lonres.com/newsletter/Monthly-Briefing-March-2023.pdf

Expertly preparing your property for sale

Expertly preparing your property for sale 1

Achieve asking price, increase viewings, and reduce survey delays by carefully preparing your property for market.

  • 22% of buyers wouldn't make an offer on a cluttered property
  • Daylight makes rooms appear larger and more inviting
  • Hiring a self-storage unit can be a solution to store bulky furniture, increasing floor space

Spring and Summer remain popular seasons to sell, with data from Rightmove finding many new listings coming on the market during March, April and May1. During these times, competition between sellers is higher, making preparing a property for sale more critical than ever.

 

How to prepare your house for sale

Expertly preparing your property for sale 2

There is more to preparing a house for sale than a fresh coat of paint. It's about genuinely seeing your home through someone else's eyes – possibly even a harsh critic – before investing time and money to resolve the issues. In doing so, you’ll help achieve the asking price, draw in buyers, and reduce red flags on the survey.

Once instructed, all reputable Central London Estate Agents will organise professional photographs of your home. These photos may be why a potential buyer does or does not book a viewing. Showcasing your property in the best light, using tips for getting your house ready to sell is a worthwhile approach.

 

Cleverly decluttering the property

Expertly preparing your property for sale 3

Research from self-storage company Big Yellow found that almost a fifth of buyers (22%) wouldn't make an offer on a property if it were too cluttered2. Decluttering should mean removing things from the property rather than storing items in cupboards. Organising storage cupboards and showcasing available space should be the priority, rather than filling it.

Maximised space can increase the sale price by as much as 11%3, so removing bulky, unused furniture could help boost profits, making it worth renting a short-term storage unit.

 

Take down seasonal decorations

Expertly preparing your property for sale 4

While you’re decluttering, think carefully about objects and decorations that feel seasonal or could date the property in photographs. Christmas cards, easter baskets, carved pumpkins, and birthday banners should be removed and stored before any photography commences.This will give your home year-round appeal.

 

Completing repairs

Expertly preparing your property for sale 5

Data from Dataloft found that 76% of people are put off the property because of cracks, marks and stains, 54% because of damaged kitchen cabinets, and 49% because of extensive mould4.

Stains and mould are red flags for your viewers and your survey. They may indicate a more significant issue – even if you know the stain is because of a fixed leak or the mould due to condensation. Take time to look around the property, inside and out, close up and from across the street. Complete any maintenance jobs to show that your property has been cared for and reduce unnecessary notes on your survey.

 

Making the most of natural lighting

Expertly preparing your property for sale 6

Light quality is the top point on the house viewing checklist by Which?5 Artificial light should be bright, using white LED bulbs where possible and avoiding the yellow glow that can make the room feel dark and dingy. Make the most of natural light by pulling back blinds and fully opening curtains; this will help the room feel larger and more inviting.

 

Let the best features stand out

Expertly preparing your property for sale 7

Every home has stand-out features that appeal directly to the buyers you’re targeting, but are yours really being displayed at their best? Over time, homeowners tend to forget about the aesthetic as they go for what’s practical: placing furniture in front of nooks or disused fireplaces, draping curtains and blinds in front of original sash windows, or carpeting over beautiful floorboards.

Take stock of your home’s original and unique features, and give them the space and attention they need to stand out to viewers at their best.

 

Enhancing exterior appeal

Expertly preparing your property for sale 8

The property exterior will be the first thing the viewer sees. They may see the property from across the road and up close, so it is essential to analyse the exterior from all angles. Fix and clean up guttering, check the chimney and roof for damage, cut the grass and tidy up plants, clean the windows and doors, move cars off the drive, and tidy away tools and toys.

 

Investing in upgrades

Expertly preparing your property for sale 9

Investing time and money in upgrading your property can help you sell your house. It might be minor upgrades of changing light switches, plug sockets and door handles or large-scale renovations of bathrooms and kitchens for maximum value. Other upgrades include new insulation, garage doors and internal doors, updated windows, and new flooring.

 

Your property – sold

Whether you are selling an investment property or your own home, preparing your property for sale with upgrades, decluttering, and repairs can help boost viewings and offers. Following our tips and a selling house checklist, viewers will see that the property has been well cared for and is an intelligent investment or ideal home.

For further preparation advice, or if you’d like to list your property, contact us to start a conversation.

 

Request a Valuation

 

References

  1. https://www.independent.co.uk/money/march-is-strongest-month-to-sell-a-home-website-finds-b2014371.html 
  2. https://www.bigyellow.co.uk/blog/tips/de-clutter-your-home-to-bump-up-the-sale-price-say-estate-agents/ 
  3. https://www.bigyellow.co.uk/blog/tips/de-clutter-your-home-to-bump-up-the-sale-price-say-estate-agents/
  4. https://www.dataloft.co.uk/
  5. https://www.which.co.uk/money/mortgages-and-property/first-time-buyers/buying-a-home/house-viewing-checklist-aHBHE1l3AEb9

Sell, diversify or invest? How landlords can make the best of the Capital Gains Tax changes from April 2023

  • Capital Gains allowance to significantly reduce to £6,000
  • Further reductions planned for 2024
  • Rental properties are in high demand, and supply is low, offering the potential for new investment properties

From April 2023, the Capital Gains allowance in the UK will be halved from £12,300 to £6,000, with plans to reduce it further to £3,000 in 2024. Landlords selling investment properties will see an increase in their tax bill, posing the question: is now the right time to sell up? Should landlords diversify or invest in more properties?

Exploring the Capital Gains Tax changes img 1

 

What is Capital Gains Tax in the UK?

Just to remind anyone unfamiliar with the tax system in the UK, Capital Gains Tax is a tax paid on the profit upon the sale or disposal of an asset that has increased in value. The asset could be a personal possession, a second home, or shares not held in an ISA.

Landlords can expect to pay Capital Gains Tax on buy-to-let investments. When selling a rental property that has increased in value, the owner will pay tax on the profit. For example, if you purchased a property for £500,000, and sold it for £550,000, the total profit would be £50,000 – which would be subject to Capital Gains Tax.

Capital Gains Tax is 28% for higher-rate taxpayers and 18% for basic-rate taxpayers. With the drastic change in tax allowance, landlords will now expect to pay thousands more when they sell an investment property.

Exploring the Capital Gains Tax changes img 2

 

Strategic plans ahead of changes to Capital Gains Tax

The pandemic drove renters out of the city for a few years, increasing maintenance and energy costs. With the changes to tax rates, buy-to-let investors haven’t had it easy. Naturally, property investors are cautious about their next move and must consider a long-term strategy that leads to long-term gain.

Selling weaker properties ahead of the Capital Gains Tax threshold changes has been a strategy for some, while others choose to diversify into furnished holiday lets to generate more revenue. Landlords looking further ahead have seen potential growth opportunities during the current climate and have decided to ride out the storm – and even make more investments.

 

A positive outlook for landlords

Prices, interest rates and taxes may be increasing, but post-pandemic demand for rentals remains high – creating huge opportunities for landlords looking to expand their portfolios. The Royal Institution of Chartered Surveyors have already reported huge demand for rental properties. March 2023 marked a five-month high for demand in the sector as a shortfall of properties took effect.

As Central London Estate Agents, in recent months, we have seen demand outstripping supply, average time on the market hitting record lows and the prime London lettings market doing a complete 360 post-pandemic. Reduced discounts and void periods, increased rent prices, and huge demand for rentals all lead to excellent conditions for any landlord looking for further investments.

 

Future-proof investments

While the tax increases may cause caution, there are options for landlords to remain in the buy-to-let market and consider further investments. Now is the time for landlords to develop a long-term strategy to get the best return, even during turbulent times.

At Berkshire Hathaway HomeServices London, we are experts in the property market and prime London lettings property management. Whether you’re considering selling weaker properties, diversifying, handing down assets to future generations or increasing portfolios, we can advise you on your next move with the Capital Gains Tax changes in mind – and our exclusive mortgage providers, Connaught Private Finance, can help you plan head.

Discuss your investment with our team today.

 

Contact Us

Exploring the Post-Winter Prime London Lettings Market
Vimeo Video ID: 813178393

Why now is the time to list your property for the prime London rental market.

  • Demand for prime London rental properties is high and stock is low
  • Rent prices are rising, but the threat of a recession may see the market level out
  • Average discounts on rental properties fell to near zero in Winter 2022

The pandemic had a significant impact on the prime London lettings market. With people leaving the city to move abroad or to the countryside, and ‘work from home’ removing the need for a city base, there was a reduction in activity, and an influx of rental properties on the market.

Today, it’s a different story. There’s now a lack of property stock. The decline is possibly due to, a trend towards long-term tenancies, and landlords selling their rental investments. This severe shortfall of available properties is the catalyst for the average rent in London reaching record highs1.

It’s time to look at where the prime London rental market stands today, and why now is an ideal time for landlords to list properties and make further investments.

Post Winter Prime London Lettings Market 1 

Rising rents without discounts

In the fourth quarter of 2022, we saw how strong the prime London lettings market was for landlords. Not only were rent prices rising to record highs, but the average discount to average rents fell to near zero – with just one in ten recording a discount. Some tenants offered more than the asking rent to secure the property in a market where property was scarce.

Landlords with property investments in the prime London market were receiving asking prices, or above, and having their pick of tenants as people were driven back to the city for work and education.

Post Winter Prime London Lettings Market 2 

Decrease in new instructions, increase in activity

At the start of 2023, we saw a rise in property stock. However, we can see signs of this tightening again in March, with 20% fewer London properties available than in February 2023. New instructions are down across the prime London lettings market, but activity is increasing as tenants start their property search.

Each year, from March through to November, we see an annual increase in applicant registrations for rentals in the area. International corporate relocations start taking place before the new financial year, and families look to move during Easter and Summer holidays.

This increase in activity has led to 20% more applicants. However, with 20% fewer properties on the market, rental demand in London outweighs supply. While this could mean further rent increases, LonRes reports that the threat of recession and job losses in the City and other sectors could lead to a levelling out of the prime London lettings market2.

Matt Staton, Head of Lettings, at Berkshire Hathaway HomeServices London, shares a preview of what is expected in the prime Central London lettings market ahead of the second quarter of 2023.

 

Reduced void periods

In the current climate, rentals aren’t spending long on the market. In winter 2022/2023 LonRes data found that the average time on the market hit record low levels. Reduced void periods are a desirable factor for any investment landlord3.

 

Call for more landlords

The post-pandemic prime London lettings market has done a complete 360, moving from low activity levels and high stock to high activity and low stock. Rent prices are rising and the few properties continue to support market growth into Q2 of 2023, and beyond.

The buoyant tenant market creates a strategic opportunity to list rental properties in prime London. Landlords can fetch higher rental yields, have a wider pool of tenants, and reduce void periods. If you have a property investment or are looking for one, now is the time to list it.

As Central London estate agents, BHHS London have tenants ready and waiting to hear about suitable properties in Central London. If you are a landlord with a property to let, we believe the economic outlook is favourable for listings in prime markets.

Contact us to find out more

 

Request a Valuation

 

References

  1. https://www.lonres.com/local/newsletter/London-Report--January-2023.pdf 
  2. https://vimeo.com/813178393 
  3. https://www.lonres.com/local/newsletter/London-Report--January-2023.pdf 

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