Dr_Mibbles Posted May 21, 2013 Share Posted May 21, 2013 The Central London rental market is dramatically changing, and that change has occurred in the last few months and is now picking up pace. Six months ago I embarked on a personal quest to find a suitable one bedroom flat to rent one of the following areas: Islington, Camden, Kensington, Westminster, Hackney, and Southwark. All Central, all a bit pricey. Anyway, I couldn't find anything in a remotely nice area for less than £450 a week, and very little was on the market, it was tough. I felt that £450pw was too much for a tiny one-bed, so I gave up temporarily. I have recently embarked again on my search, as I approach a break clause in my current tenancy and would like to move. And what I am seeing is shocking me. Supply of one bedroom flats has gone through the roof, and prices have dropped. It's now possible to rent a one-bedroom flat in one of the most desirable areas of Islington for £300 a week - simply unheard of 6 months ago. And flats I remember seeing on for £450 a week are now in the £350-375 range. Searches for one bedroom flats on Rightmove (not including studios) reveal the following numbers: Islington: 1000+ properties Kensington: 1000+ properties Camden: 1000+ properties Westminster: 1000+ properties Southwark: 1000+ properties Hackney: 619 properties If I compare this to six months ago, where I was hounding estate agents and searches returned a few hundred (if that) results, the change has been dramatic. What I don't understand though, is how none of this is feeding into the media reports about 'record asking rents' etc, the press releases put out by the industry seem to be based either on old data or outright lies. Something dramatic has changed. But the PR firms working on behalf of the industry seem to be keeping very quiet indeed about what is really going on. Quote Link to comment Share on other sites More sharing options...
RentingForever Posted May 21, 2013 Share Posted May 21, 2013 £300 per week for a one bed flat is still insanely expensive though. Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted May 21, 2013 Share Posted May 21, 2013 Don't rightmove track supply somehow? I seem to remember seeing graphs, albeit hard to find. Quote Link to comment Share on other sites More sharing options...
Mrs Bear Posted May 21, 2013 Share Posted May 21, 2013 (edited) The Central London rental market is dramatically changing, and that change has occurred in the last few months and is now picking up pace. Six months ago I embarked on a personal quest to find a suitable one bedroom flat to rent one of the following areas: Islington, Camden, Kensington, Westminster, Hackney, and Southwark. All Central, all a bit pricey. Anyway, I couldn't find anything in a remotely nice area for less than £450 a week, and very little was on the market, it was tough. I felt that £450pw was too much for a tiny one-bed, so I gave up temporarily. I have recently embarked again on my search, as I approach a break clause in my current tenancy and would like to move. And what I am seeing is shocking me. Supply of one bedroom flats has gone through the roof, and prices have dropped. It's now possible to rent a one-bedroom flat in one of the most desirable areas of Islington for £300 a week - simply unheard of 6 months ago. And flats I remember seeing on for £450 a week are now in the £350-375 range. Searches for one bedroom flats on Rightmove (not including studios) reveal the following numbers: Islington: 1000+ properties Kensington: 1000+ properties Camden: 1000+ properties Westminster: 1000+ properties Southwark: 1000+ properties Hackney: 619 properties If I compare this to six months ago, where I was hounding estate agents and searches returned a few hundred (if that) results, the change has been dramatic. What I don't understand though, is how none of this is feeding into the media reports about 'record asking rents' etc, the press releases put out by the industry seem to be based either on old data or outright lies. Something dramatic has changed. But the PR firms working on behalf of the industry seem to be keeping very quiet indeed about what is really going on. Someone said on another thread the other day that they'd seen hefty rent drops in Shoreditch. I have since done a zoopla rental search in non-central areas I know (KT2, SW15, SW17) and have found a good many 'reduced' properties, many quite substantially reduced. And apparently quite a lot available. Some of the rents I've seen quoted a few months ago have been staggering for quite ordinary properties. Maybe LLs are beginning to learn the hard way that rents can't simply keep going up for ever and that uber-greed only results in voids. Edited May 21, 2013 by Mrs Bear Quote Link to comment Share on other sites More sharing options...
Dr_Mibbles Posted May 21, 2013 Author Share Posted May 21, 2013 £300 per week for a one bed flat is still insanely expensive though. It's all relative of course, but it's not expensive for Islington. The key message here is: supply hugely up, and prices falling. Quote Link to comment Share on other sites More sharing options...
musehead Posted May 21, 2013 Share Posted May 21, 2013 It's not the case in the Balham area (SW12 / SW17), flats seem to be asking roughly the same for rent as they were 1 year ago, and are going off the market very quickly. That's roughly £350-400pw for a 2-bed. Quote Link to comment Share on other sites More sharing options...
Gigantic Purple Slug Posted May 21, 2013 Share Posted May 21, 2013 It's not the case in the Balham area (SW12 / SW17), flats seem to be asking roughly the same for rent as they were 1 year ago, and are going off the market very quickly. That's roughly £350-400pw for a 2-bed. is this a case of people moving from expensive to cheaper areas as hb changes kick in? Quote Link to comment Share on other sites More sharing options...
long time lurking Posted May 21, 2013 Share Posted May 21, 2013 The Central London rental market is dramatically changing, and that change has occurred in the last few months and is now picking up pace. Six months ago I embarked on a personal quest to find a suitable one bedroom flat to rent one of the following areas: Islington, Camden, Kensington, Westminster, Hackney, and Southwark. All Central, all a bit pricey. Anyway, I couldn't find anything in a remotely nice area for less than £450 a week, and very little was on the market, it was tough. I felt that £450pw was too much for a tiny one-bed, so I gave up temporarily. I have recently embarked again on my search, as I approach a break clause in my current tenancy and would like to move. And what I am seeing is shocking me. Supply of one bedroom flats has gone through the roof, and prices have dropped. It's now possible to rent a one-bedroom flat in one of the most desirable areas of Islington for £300 a week - simply unheard of 6 months ago. And flats I remember seeing on for £450 a week are now in the £350-375 range. Searches for one bedroom flats on Rightmove (not including studios) reveal the following numbers: Islington: 1000+ properties Kensington: 1000+ properties Camden: 1000+ properties Westminster: 1000+ properties Southwark: 1000+ properties Hackney: 619 properties If I compare this to six months ago, where I was hounding estate agents and searches returned a few hundred (if that) results, the change has been dramatic. What I don't understand though, is how none of this is feeding into the media reports about 'record asking rents' etc, the press releases put out by the industry seem to be based either on old data or outright lies. Something dramatic has changed. But the PR firms working on behalf of the industry seem to be keeping very quiet indeed about what is really going on. Don't know about London but around my way the the rule changes in HB payments concerning self contained units ( they will only pay for a self contained unit for people over the age of 35 opposed to 25) has lead to a over supply of rented and for sale one bedder's and prices have been going through the floor on both for a good while now Quote Link to comment Share on other sites More sharing options...
thecrashingisles Posted May 21, 2013 Share Posted May 21, 2013 It's all relative of course, but it's not expensive for Islington. The key message here is: supply hugely up, and prices falling. In the sales market Osborne's help to buy will just create a Lawson style mini-boom by bringing forward demand and then an almighty crash when demand dries up and the pent up supply hits the market. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted May 21, 2013 Share Posted May 21, 2013 In the sales market Osborne's help to buy will just create a Lawson style mini-boom by bringing forward demand and then an almighty crash when demand dries up and the pent up supply hits the market. ....yes ..the clown is using tax revenues as casino chips for the oo market...any politician who has not learned the boom/bust rule should be jailed when the inevitable repeats... Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted May 22, 2013 Share Posted May 22, 2013 Good news coming thick and fast now. Quote Link to comment Share on other sites More sharing options...
urbanmax Posted May 22, 2013 Share Posted May 22, 2013 There is something in the air (I hope). I have interests in the lettings business and know a number of landlords. One of the largest who has more than a couple of hundred properties on rent has recently asked for a number of properties to be vacated so they could be sold. Although he was never a BTL landlord to begin with. He was a developer that got caught by the low volumes and prices when the market turned and the end of the boom years. Have also heard of others with smaller holdings in the BTL sector putting properties up for sale. This is all in East/North East London Quote Link to comment Share on other sites More sharing options...
Venger Posted May 22, 2013 Share Posted May 22, 2013 Some good news for a change. It's been ages since we had any good news. Just years of bad news attrition with reinflation, rents rising, and VIs openly celebrating stimulus schemes to keep house prices inflated. Under siege for years, when we should have had a crash. If there is anything in it, I hope the effect rapidly spreads outside of central London to rents in the rest of the country. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted May 22, 2013 Share Posted May 22, 2013 If I compare this to six months ago, where I was hounding estate agents and searches returned a few hundred (if that) results, the change has been dramatic. Six months ago, the market cycle was at its quietest time. Now it's at its busiest. A couple of years back, we were looking to move rental after enduring a freezing winter in a poorly insulated place. At the end of January there were all of six rentals on offer in the small town (so nothing on London's scale) we were living in. By mid- march, there were dozens to pick and choose from. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted May 22, 2013 Share Posted May 22, 2013 From the Letting Agent Today site (admittedly from a VI source): Average rents on the rise as London hits new record Tuesday 21st May 2013 Rents in April rose right across England and Wales, with average rents 3.9% higher than the same month last year – but tenants struggled to keep up with their payments. According to LSL, parent company of Your Move and Reeds Rains, the average monthly rent is now £736 a month, with London rents standing at a new record of £1,110 per month – 7.6% higher than a year ago. David Newnes, director of LSL Property Services, said: “Rents everywhere are higher than a year ago – at a time when pay has crept up at the slowest rate in years. “Landlords across the UK have increased the stock of rental properties by around 10% since 2008 – but the more fundamental squeeze is still coming from a lack of new building.” The total annual return on a rental property rose to 5.9% in April, LSL estimates. This represents an average return of £9,679 with rental income of £7,807 and assumes a capital gain of £1,872. If rental property prices maintain the same trend as the last three months, the average investor in England and Wales could expect to make a total annual return of 5.7% per property over the next 12 months – equivalent to £9,496 per property, but before any mortgage payments and all other costs. Total arrears in April were £282m, LSL estimates, compared to £284m in March. This equates to 8.4% of all rent across England and Wales, compared to 8.5% of all rent in March. Move with Us, the property services network, also now produces rental statistics, which put rents far higher than LSL. Move with Us puts advertised London rents at £2,182 per month and average rents across the country at £966 per month. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted May 22, 2013 Share Posted May 22, 2013 Our rent static for 5th year...last year, rear windows all replaced. Yesterday, LL round with glaziers to replace front windows. ( thats 4 large multipained windows and maybe a front door area about 15 ft wide). Quote Link to comment Share on other sites More sharing options...
tomandlu Posted May 22, 2013 Share Posted May 22, 2013 I'm seeing some positive signs (reductions, more supply) in my area (Tooting/Streatham), but it's far from a clear picture. My impression is that it's at the higher end that the drops are occurring, which might imply that the more well-off are moving back to more central locations? All very confusing - the dust needs to settle IMHO. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted May 22, 2013 Share Posted May 22, 2013 Six months ago, the market cycle was at its quietest time. Now it's at its busiest. A couple of years back, we were looking to move rental after enduring a freezing winter in a poorly insulated place. At the end of January there were all of six rentals on offer in the small town (so nothing on London's scale) we were living in. By mid- march, there were dozens to pick and choose from. I feel the shift is that people who own BTL are fed up with voids/low rent/losing the HB "safety net"/reversal of HPI etc. As they see others bailing out at lower and lower prices this will light a fire under their ars*e to do the same, sheeple see sheeple do (as others do) Rates don`t even need to rise, the slide down has begun for BTL IMO. Quote Link to comment Share on other sites More sharing options...
Dr_Mibbles Posted May 22, 2013 Author Share Posted May 22, 2013 is this a case of people moving from expensive to cheaper areas as hb changes kick in? Absolutely spot on - this has been widely reported. I read an article recently which stated that, in the last few months, inner London local authorities have procured over 8,000 rental properties in outer boroughs because of the benefit cap. There is a huge socio-economic shift occurring as those on housing benefit are excluded from Central London. This has pushed up prices in cheaper outer boroughs where asking prices were below the cap. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 22, 2013 Share Posted May 22, 2013 The rental sector is one of the best ways to judge how well the local economy is doing......rents are very closely linked to wages/income.......sure they can begin by splitting a larger place into smaller sections to help keep rents lower but how low/small can you go.....soon people will wake up and say enough is enough this can't go on...paying good money for bad rubbish. Quote Link to comment Share on other sites More sharing options...
tomandlu Posted May 22, 2013 Share Posted May 22, 2013 Absolutely spot on - this has been widely reported. I read an article recently which stated that, in the last few months, inner London local authorities have procured over 8,000 rental properties in outer boroughs because of the benefit cap. There is a huge socio-economic shift occurring as those on housing benefit are excluded from Central London. This has pushed up prices in cheaper outer boroughs where asking prices were below the cap. Which areas? Around here (Tooting/Streatham) rents for any bearable properties always seemed to set at the cap. Quote Link to comment Share on other sites More sharing options...
Dr_Mibbles Posted May 22, 2013 Author Share Posted May 22, 2013 Which areas? Around here (Tooting/Streatham) rents for any bearable properties always seemed to set at the cap. The areas mentioned have been Haringay, Enfield, Barnet, Brent. I suspect there are others, but the local authorities where people are priced out are probably trying to house people as near to they can to their old home, while remaining within the cap. Quote Link to comment Share on other sites More sharing options...
mk1mini Posted May 22, 2013 Share Posted May 22, 2013 (edited) Our rent static for 5th year...last year, rear windows all replaced. Yesterday, LL round with glaziers to replace front windows. ( thats 4 large multipained windows and maybe a front door area about 15 ft wide). I've heard a lot of this. When speaking frankly to my landlady (we got on quite well) last year questioning why she was repainting our flat with us still in situ, she responded that she was undertaking a rennovation programme to offset profits on her portfolio (50+ in SW12, SW14, SW15, & SW18 - mainly bought in the late 90's & early 00's) due to the low interest rates (ie she was paying too much tax and wanted to use some if renovating) Edited May 22, 2013 by mk1mini Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted May 22, 2013 Share Posted May 22, 2013 is this a case of people moving from expensive to cheaper areas as hb changes kick in? Same thoughts here. Quote Link to comment Share on other sites More sharing options...
winkie Posted May 22, 2013 Share Posted May 22, 2013 Our rent static for 5th year...last year, rear windows all replaced. Yesterday, LL round with glaziers to replace front windows. ( thats 4 large multipained windows and maybe a front door area about 15 ft wide). They are looking after their investment....you are reaping the benefits. Quote Link to comment Share on other sites More sharing options...
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