London Property Rent Market Now Offers Higher Returns
More London property owners might wish to think about putting up their property for lease, as London property rent returns today seem to be improving, because of the ever-growing amount of folks seeking property to rent in the funds. Recently, there's been a remarkable shift in supply and demand for land to rent, together with the access to good quality rental properties in London falling.
London, a thriving cosmopolitan city, has long been a popular spot to rent property. But finding a suitable property in London to rent is becoming more difficult because of a drop in the supply of rental property caused largely by a surge of 'reluctant tenants', according to the Association of Residential Letting Agents (ARLA).
More tenants are currently negotiating extensions to their current rent contracts, because of a relative shortage of other properties to rent, according to different London Estate Agents, such as Foxtons, a business which boasts a higher renewal rate.
ARLA research, conducted across UK landlords and letting agents revealed that the supply of land to lease has fallen, while leasing demand has improved, partly cause fewer people are purchasing land. Ian Potter, operations director at ARLA, said: "Many individuals currently in a position to purchase are struggling to find the appropriate property, since there's also a shortage of both properties available and realistic mortgages"
In the last quarter of last year, an average 41 percent of ARLA members surveyed reported more tenants than property available to lease.
Peter Rollings, the managing director of a top London letting agent, commented: "Stock looks like an issue in the leasing sector. It really confuses me as to where all this house has gone!
"In fact, more people are just sitting on the fence right now and are opting not to rent their property as they wait to find out what happens in the sales property marketplace."
The rise in tenant demand comes at a time once the supply of new build residential property coming on the rental market is falling. The National Housing Federation report that the number of new homes built in England and Wales is expected to drop this year to its lowest level since 1923.
Property developers are on path to build under 123,000 homes between April 2009 and March 2010, 18,000 fewer than were built during the past financial year, because of the fact that most house builders cut back improvements in light of the recession. This season will see the smallest total of new property since 1923/4, when just 86,000 homes were built, excluding the war years.
"As demand exceeds supply we are confronted with a new challenge - the best way to provide enough good-quality rental properties to meet this demand," Potter added.
chirii la romani in londra from the London property rent market coupled with a growth in demand for property to rent is in turn causing a drop in lease void periods and an increase in rental rates and yields across much of London - an attractive proposition for rental real estate investors.
As January, Foxtons, for instance, have had 20% more applicants for leased property in this time this past year. This demand is leading to rent rises and an increase in renewals.
London, a thriving cosmopolitan city, has long been a popular spot to rent property. But finding a suitable property in London to rent is becoming more difficult because of a drop in the supply of rental property caused largely by a surge of 'reluctant tenants', according to the Association of Residential Letting Agents (ARLA).
More tenants are currently negotiating extensions to their current rent contracts, because of a relative shortage of other properties to rent, according to different London Estate Agents, such as Foxtons, a business which boasts a higher renewal rate.
ARLA research, conducted across UK landlords and letting agents revealed that the supply of land to lease has fallen, while leasing demand has improved, partly cause fewer people are purchasing land. Ian Potter, operations director at ARLA, said: "Many individuals currently in a position to purchase are struggling to find the appropriate property, since there's also a shortage of both properties available and realistic mortgages"
In the last quarter of last year, an average 41 percent of ARLA members surveyed reported more tenants than property available to lease.
Peter Rollings, the managing director of a top London letting agent, commented: "Stock looks like an issue in the leasing sector. It really confuses me as to where all this house has gone!
"In fact, more people are just sitting on the fence right now and are opting not to rent their property as they wait to find out what happens in the sales property marketplace."
The rise in tenant demand comes at a time once the supply of new build residential property coming on the rental market is falling. The National Housing Federation report that the number of new homes built in England and Wales is expected to drop this year to its lowest level since 1923.
Property developers are on path to build under 123,000 homes between April 2009 and March 2010, 18,000 fewer than were built during the past financial year, because of the fact that most house builders cut back improvements in light of the recession. This season will see the smallest total of new property since 1923/4, when just 86,000 homes were built, excluding the war years.
"As demand exceeds supply we are confronted with a new challenge - the best way to provide enough good-quality rental properties to meet this demand," Potter added.
chirii la romani in londra from the London property rent market coupled with a growth in demand for property to rent is in turn causing a drop in lease void periods and an increase in rental rates and yields across much of London - an attractive proposition for rental real estate investors.
As January, Foxtons, for instance, have had 20% more applicants for leased property in this time this past year. This demand is leading to rent rises and an increase in renewals.
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