London’s rental growth spearheaded by boroughs in the west, while PCL sees a slow-down

by Richard on April 28, 2016 No comments

The average rent for a two-bedroom home in London is predicted to hit £2,000 a month this year, according to research from a leading London estate agency, which also revealed how rents vary by borough across the capital.

Currently, two-bed London homes rent on average for £1,867 a month, representing a two per cent increase from the beginning of the year. Given that tenancies which commence in September are typically 11 per cent higher than tenancies that commence in the December before, a report by estate agency Portico forecasts that two-bed rents will reach £2,008 a month by September 2016.

And with two people sharing the cost of a two-bedroom home – i.e. £1,004 a month – this shared rent figure will consume 46 per cent of the average London monthly net salary.

The same reports shows that Ealing is the borough that has seen the largest increase during the first quarter of 2016, with rents for a two-bed home growing 6.9 per cent to £1,825 a month. This is followed by Richmond-upon-Thames with a 6 per cent increase (£1,934 a month) and Lambeth with a 5.8 per cent increase (£2,051 a month).

However, average rents have reduced for two-bed homes across seven London boroughs, including two boroughs in Prime Central London where rents in Westminster and Kensington and Chelsea have reduced by 5.7 per cent and 1.1 per cent, respectively.

Bromley has experienced the greatest decline in monthly rents for all properties with a reduction of 6.3 per cent over the first quarter, followed by Hillingdon at 4.4 per cent and Kingston-upon-Thames at 4.1 per cent.

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RichardLondon’s rental growth spearheaded by boroughs in the west, while PCL sees a slow-down

Appetite for property in regional cities close to levels seen in booming outer London boroughs

by Richard on April 11, 2016 No comments

London’s outer boroughs and commuter belt continue to outperform the rest of the country where property demand is concerned, but there is increasing evidence that regionals cities are attracting as much attention from house-buyers in the UK.

According to one leading property portal, the London Borough of Bexley remained the hottest spot in the UK in the first quarter of 2016, with demand at 72 per cent (against a UK average of 39 per cent). But in second place was Bristol (68 per cent), making it the most in demand location outside of the capital and commuter belt, while Bedford (66 per cent) took a very respectable third place.

Also in the same portal’s top 10 ‘in-demand’ locations were Cambridge (62 per cent), Watford (62 per cent), Sutton (61 per cent), Kent’s Medway (63 per cent), Milton Keynes (61 per cent), and Aylesbury (63 per cent). However, with demand currently at 65 per cent, a surprise entry into the top 10 was Ipswich. With a direct commute into Liverpool Street of just over an hour, Ipswich’s new found demand shows the ever increasing boundaries of the London commuter zone, as buyers search further afield for affordable property.

It’s also interesting to note which locations climbed the fastest during the first three months of the year. Aberdeen and Durham have seen the quickest recovery in terms of demand, scoring 15 per cent and 27 per cent respectively, albeit from low bases. Stoke-on-Trent (37 per cent) is the third highest climber, flying the Midlands flag with Walsall (28 per cent) as the eighth highest climber.

It would seem the Northern Powerhouse is starting to make an impact, particularly in Yorkshire, with Wakefield (33 per cent) the fourth highest climber over the last quarter and fifth over the course of the last year (53 per cent). Wakefield is joined by Leeds (31 per cent) in fifth, Sunderland (29 per cent) sixth and Bradford (29 per cent) seventh in terms of growth over the last quarter, with Bradford having also made the list of most affordable cities in the UK. Rhondda Cynon Taf (26 per cent) is the only Welsh entry in the top 10 highest climbers in the last quarter, with South Lanarkshire (23 per cent) joining Aberdeen as the second Scottish entry, completing the highest climbers over the last quarter.

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RichardAppetite for property in regional cities close to levels seen in booming outer London boroughs