London rentals up 5% on yearLondon rental prices are up almost 5% year-on-year, says a top independent estate agent.
Kinleigh Folkard & Hayward (KFH), which has more than 50 branches across the city, says the average achieved monthly rent is £1,538, compared with £1,476 last year.
The largest rise is in South East London, where rents are up 13% annually in Surrey Quays, 12% in Blackheath and 11% in Streatham. In North London rents are up 10% in Belsize Park and 8% in Balham and Tooting.
Tenancy lengths are also on the rise. The average length KFH has increased from 14-15 months year-on-year. In Crouch End and East Dulwich, tenancies are averaging 17 months.
James Thornett, KFH Regional Lettings Director, says, "The lettings market in London is experiencing huge amounts of growth as it becomes increasingly difficult for buyers to get onto the property ladder.
“We're noticing rises particularly in areas that were once less popular and with the exception of Belsize Park, this 'overspill' is becoming increasingly prevalent as the traditional core rental areas become too expensive for many tenants.”
As rents increase, so tenants are looking for longer rental periods to ‘lock in’ their properties for the longest time possible.
“In such a frugal economy, many are keen to minimise the costs associated with moving as well as tenancy administration costs. While this trend is an advantage to tenants, it is also gaining popularity among landlords who are keen to avoid costly vacant periods where their property could remain un-let.
“In quite a few cases, pre-agreed rent increases are also built into the tenancy agreement, to ensure that the rent keeps pace with the rising market,” he says.
Kinleigh Folkard & Hayward is one of London’s largest independent agents and it plans to expand further with another 20 offices in the next five years.