London Property Rent Market Now Offers Higher Returns
chirii in londra may wish to consider putting their property up for lease, as London property lease returns today seem to be improving, because of the ever-growing amount of people seeking property to lease in the funds. In recent months, there's been a remarkable shift in supply and demand for property to rent, together with the access to excellent quality rental properties in London falling.
London, a thriving cosmopolitan city, has long been a popular place to rent land.
More tenants are now negotiating extensions to their existing rent contracts, due to a relative shortage of alternative properties to lease, according to different London Estate Agents, such as Foxtons, a company which boasts a high renewal rate.
ARLA research, conducted across UK landlords and letting agents revealed that the source of land to lease has fallen, while rental demand has improved, partly cause fewer people are currently buying land. Ian Potter, operations manager at ARLA, said: "Many people now in a position to purchase are fighting to find the appropriate property, since there's also a shortage of both properties for sale and realistic mortgages"
In the final quarter of last year, an average 41% of ARLA members surveyed reported more tenants than land available to lease.
It really confuses me as to where all this property has gone!
"In fact, more folks are just sitting on the fence at the moment and are choosing not to rent their land as they wait to see what happens in the revenue property market."
The rise in tenant demand also comes at a time when the supply of new build residential property coming onto the rental market is decreasing. The National Housing Federation report that the number of new homes built in England and Wales is expected to fall 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 past financial year, because of the simple fact that most house builders cut back developments in light of the downturn. This season will see the smallest total of new property since 1923/4, when just 86,000 homes were constructed, excluding the war years.
"As demand exceeds supply we are faced with a new challenge - the best way to present enough top notch rental properties to meet this requirement," Potter added.
The decrease in the London property lease market coupled with a rise in demand for property to lease is in turn inducing a drop in lease void periods and a rise in rental prices and yields across much of London - an appealing proposition for rental real estate investors.
Since January, Foxtons, for instance, have experienced 20 percent more applicants for leased property in this time this past year.
London, a thriving cosmopolitan city, has long been a popular place to rent land.
More tenants are now negotiating extensions to their existing rent contracts, due to a relative shortage of alternative properties to lease, according to different London Estate Agents, such as Foxtons, a company which boasts a high renewal rate.
ARLA research, conducted across UK landlords and letting agents revealed that the source of land to lease has fallen, while rental demand has improved, partly cause fewer people are currently buying land. Ian Potter, operations manager at ARLA, said: "Many people now in a position to purchase are fighting to find the appropriate property, since there's also a shortage of both properties for sale and realistic mortgages"
In the final quarter of last year, an average 41% of ARLA members surveyed reported more tenants than land available to lease.
It really confuses me as to where all this property has gone!
"In fact, more folks are just sitting on the fence at the moment and are choosing not to rent their land as they wait to see what happens in the revenue property market."
The rise in tenant demand also comes at a time when the supply of new build residential property coming onto the rental market is decreasing. The National Housing Federation report that the number of new homes built in England and Wales is expected to fall 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 past financial year, because of the simple fact that most house builders cut back developments in light of the downturn. This season will see the smallest total of new property since 1923/4, when just 86,000 homes were constructed, excluding the war years.
"As demand exceeds supply we are faced with a new challenge - the best way to present enough top notch rental properties to meet this requirement," Potter added.
The decrease in the London property lease market coupled with a rise in demand for property to lease is in turn inducing a drop in lease void periods and a rise in rental prices and yields across much of London - an appealing proposition for rental real estate investors.
Since January, Foxtons, for instance, have experienced 20 percent more applicants for leased property in this time this past year.
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