London Property Rent Market Now Offers Higher Returns

chirii la londra may want to consider putting up their property for lease, as London property rent returns now appear to be improving, because of the ever-growing number of folks seeking property to lease in the funds. In recent months, there's been a remarkable shift in demand and supply for land to rent, with the availability of excellent quality rental properties in London decreasing.

London, a thriving cosmopolitan town, has long been a favorite place to rent land. But finding the right property in London to rent has become harder because of a drop in the supply of rental property caused mostly by a surge of 'reluctant tenants', according to the Association of Residential Letting Agents (ARLA).

More tenants are currently negotiating extensions to their existing rent contracts, because of a relative lack of alternative properties to lease, according to different London Estate Agents, including Foxtons, a company which boasts a higher renewal rate.

ARLA research, conducted across UK landlords and letting agents demonstrated that the supply of property to lease has fallen, while rental demand has improved, partly because fewer people are buying property. Ian Potter, operations director at ARLA, said: "Lots of people currently in a position to purchase are fighting to find the right property, as there is also a shortage of properties available and realistic mortgages"

In the final quarter of last year, an average 41% of ARLA members surveyed reported more tenants than land available to rent.

Peter Rollings, the managing director of a leading London letting agent, commented: "Stock looks like a problem in the leasing sector. It really disturbs me as to where all this property has gone!

"In reality, more folks are just sitting on the fence right now and are choosing not to rent their property as they wait to find out what happens from the sales property marketplace."

The development in tenant demand comes at a time once the supply of new build residential property coming on the rental market is decreasing. The National Housing Federation report that the amount of new houses constructed in England and Wales is expected to drop this year for the lowest level since 1923.

Home developers are on path to construct under 123,000 homes between April 2009 and March 2010, 18,000 fewer than were built during the last financial year, due to the simple fact that most home builders cut back improvements in light of the recession. This season will see the lowest total of new land since 1923/4, when only 86,000 homes were constructed, excluding the war years.

"As demand exceeds supply we are confronted with a new challenge - the best way to present enough top notch rental properties to meet this requirement," Potter added.

The decline from the London property rent market combined with a growth in demand for land to lease is in turn inducing a fall in rent void periods and an increase in rental prices and yields across much of London - an attractive proposition for rental property investors.

Since January, Foxtons, for example, have had 20% more applicants for leased property in this time this past year. This requirement is resulting in lease rises and an increase in renewals.

13.05.2018 13:49:59

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