It’s well known that London experiences the highest level of demand for property of any major city in the world. The number of properties coming in to the market is falling on a month-to-month basis, yet the demand levels for property increase at the same time. This has made the capital highly attractive to investors, as buying property to lease or let is seen as an assured way of gaining a good return on investment. However, achieving this via private leasing has become more difficult.
The growth value of London rental properties fell by close to 0.5% during August 2015. This may seem like a small change, but you have to bear in mind that it comes on the back of several years of continued growth. Whilst many suspect that the dip is related entirely to the short slowdown in global economic growth that month, there are concerns that it could cause a long term fall in values. The problem here is that if rental properties fall in real term value, then so too does the actual rental price they can command.
Our services shield property owners and investors from the negative impact of this scenario. By using our guaranteed rent, London property owners are able to secure a fixed and reliable return on their investment. This return is in many respects sheltered from the effects of global economic conditions.
An overall fall in the number of new tenancy agreements being entered into in London is also of concern to investors seeking to gain returns from the private leasing market. The second quarter figures for 2015 show a fall of 15% in the number of new agreements when compared to the same period in 2014. In real terms, this means that demand for property in London is not being matched by an increase in available rental accommodation. This is a concern, but not an issue for property portfolio holders who take advantage of our guaranteed rent services. Our rental payments are fixed and assured whether or not a property is occupied.
Getting the best returns possible from the London property market requires the best expert advice and property managers. We have, time and again, proved ourselves to be exactly this over the years. Get in touch if you’d like to find out more about our services for guaranteed rent in Kingston Upon Thames and throughout the rest of the capital.
