Greater London Properties Statistics for our Central London Landlords
When reading the news on Property Market Trends and Data, it is difficult to know which data is true and applies specifically to the areas which you have properties. As an independent agent who focuses primarily on Central London, GLP wanted to offer some specific data and market trends for our landlords in the areas which we specialise in.
It is no surprise that with the Mortgage Interest Rate and Taxation changes that 2023 has brought us, renting in central London has remained very popular and the only viable option for some, due to the sales market becoming harder for first time buyers yet again.
Typically, during the summer, there are more students than professionals. However, this year, although the students have still arrived in their throws within certain areas, we have had more professionals than previous years, who were still looking for the property they couldn’t find earlier in the year due to shortage of supply.
• 30% of the deals agreed in Hyde Park remained Students, whilst the other 70% were professionals.
• 67% of the deals agreed in Bloomsbury remained Students, whilst the other 33% were professionals.
• 80% of the deals agreed in Soho & Covent Garden remained Students, whilst the other 20% were professionals.
We have also found that the demand has been spread over a diverse of nationalities across all of the lets, with no clear majority.
Renewals with significant rent increases are also at an all-time high due to renters fearing they would not be able to find an alternative property. Delivering a further drag on available supply.
The landlords which remain in the market, have seen significant increases in the number of offers received and high rents have been achieved.
The number of lets in central London has stayed around the same throughout the year since 2022.
© 2023 Data provided by Greater London Properties
Rental prices have risen by an average of 16% overall since 2022.
© 2023 Data provided by Greater London Properties Nonetheless, even with the rising prices, we've observed a 21% increase in the number of properties in Central London being marked down online since 2022. This trend is largely a result of some landlords or agents initially setting prices too high, which often makes these properties go unnoticed in their first one or two weeks on the market.
Interestingly, landlords who are not overpricing their units from the get-go are the ones achieving significantly higher than their asking prices. This is because their more reasonably priced listings attract greater interest, sparking competition and ultimately leading to offers that exceed the initial asking price.
It is no secret that the looming renters reform bill is unsettling for many landlords, so we are seeing a handful already leaving the market and selling up, as well as those who can no longer financially afford to rent the property out due to the increase in mortgage rates.
Historically October is slower month, with properties coming up to completion of works, we are expecting a busy October, with the hope of this leading onto November. December can never be predicted.
If you are a landlord and you are wondering the future of the lettings market. If you are willing to stick it out, then you will reap the rewards. More people who were looking to buy and now renting due to the mortgages. People are more interested in having the flexibility of moving and living where they would want to in Central London as opposed to wasting this money on service charge.
In Summary
As we approach 2024, the existing imbalance between supply and demand doesn't appear likely to change. In the short term, the trajectory of rental prices will be influenced more by how affordable renting remains and how renters adjust to increased costs, rather than by significant alterations in supply or demand.
We would be delighted to discuss the above and more with you directly, please feel free to give us me a call on 0207 113 1066. If you would like a updated Property Valuation, please email us and we can arrange a time to suit you.
We look forward to hearing from you,
Warm Regards
Megan Cutforth,
Lettings Director,