The prime property market in London is already starting to show signs of a move towards rentals as sale prices stagnate, inspiring many people to delay selling their property. Letting is a bold strategy with high value properties because you’ll need to find a tenant willing to pay the monthly fees. However, with our expertise in investment properties in Havering and throughout the rest of London, we can help you to find the right people to occupy your property and enjoy smooth, trouble free tenancies.
Letting your investment property is a great way to hold on to properties through the difficult market conditions the city is currently experiencing. There is rising demand for rentals, with a fivefold increase in January alone, so there are some good opportunities if owners are willing to take them.
It has been reported that a tenant in her mid 20s has paid £4 million up front to rent a £15,000 per week property in One Hyde Park. Property owners lucky enough to find a tenant like this can safely weather the tricky market conditions at the moment and wait for growth to return in the mid-term. The growth in luxury rentals shows the biggest rise in properties costing between £10,000 and £15,000 a month so there is certainly a market there.
Falling sales may be the major reason behind the rise in rentals but there is another key factor to point at. The high price of properties in London mean buying is a big risk for tenants to take without first getting a feel for living in the area. Rentals provide a short term solution by letting people live in the city for a shorter period of time before deciding whether to commit. If they don’t find what they want it is easier to move on and look elsewhere, giving renters more freedom and the ability to adapt to the market.
In 2015 the prime rental market in London could temporarily outstrip sales and the boom may continue far beyond the General Election. Some developers are even taking the opportunity to build multi-million pound properties with the intention to let them rather than sell. Investors are starting to seriously consider letting properties with around 30% of property owners already said to be ready to do so.