How has the lettings market performed for you in 2017?
The London rental market has remained resilient in 2017 and we expect our own performance to exceed expectations – the number of lettings concluded up until the end of November 2017 is up by 17.4% against the same period in 2016 while the number of enquiries from applicants for the third quarter of the year is up by 14.3% over 2016.
Rental demand from overseas professionals remains high. While in some areas there has been a slight dip in the number of Europeans relocating here, this is more than compensated for by the increasing numbers of professionals moving here from other global hotspots. We are also in the midst of a tech boom, with over 4,000 tech start-ups and firms such as Google, Apple, Facebook and Amazon setting up London offices – all adding to the demand for high-quality rental properties. These well-paid professionals have high expectations of a rental home so it is unsurprising demand continues to increase for new-build apartments with their high specifications and amenities.
New developments continue to transform the landscape, particularly areas which used to be hard to reach by public transport. But new transport infrastructure such as the Elizabeth Line (Crossrail) and urban regeneration projects such as Nine Elms mean these are areas where rental demand is now highest, dramatically altering the rental market and creating hotspots in new locations, often in Zones 3 and 4.
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 opens in December 2018.
Benham and Reeves Residential Lettings