Discussion Title: Average rent in London tops £1,500 per month for the first time ever

The figures from the most recent HomeLet Rental Index make for excellent reading for London landlords. It revealed that the average price of a rental property in the capital has hit £1,500 a month for the first time. This rise is indicative of a nationwide trend, with rents shooting up throughout the UK, but Greater London continues to lead the way. The average rent for the three months to May 2015 stood at £1,472. Nonetheless, when concentrating solely on new tenancies agreed in the month of May, the average rent passes £1,500 pcm, standing at £1,506 per month. As house prices continue to rise and first-time buyers struggle to get onto the property ladder, the Private Rented Sector (PRS) is seeing increased demand from a wide range of demographics. Young professionals, students and families looking to live close to their place of work make up a considerable number of the tenants chasing after rental properties. London is a centre of finance, culture, business and commerce, so it’s no surprise demand for homes is so high. For landlords/investors, the capital represents an excellent investment opportunity. No investment is without risk, of course, but buying and then letting property in one of the world’s most global and cosmopolitan cities seems like a pretty shrewd move if you have the necessary financial backing and experience. Properties might cost a little more, but the long-term rewards are often greater. Higher rents can be charged which means good news for both your rental yields and return on investment. The increase in average monthly rents isn’t just a Central or West London thing anymore. It’s spreading outwards, something we are witnessing in the North and East London areas in which we operate. Hackney, after years of regeneration and gentrification, is now one of London’s trendiest areas to live in. The young and hip have arrived in their droves to take advantage of its edgy, artistic, bohemian vibe and vast array of shops, pubs, bars and restaurants. Similarly, young professionals and families priced out of renting in some of the capital’s more traditionally affluent areas are heading eastwards and northwards to Walthamstow, Bethnal Green and Haringey. Significant investment is also being pumped into Tottenham and Edmonton to give these areas a much-needed facelift. Both areas have plenty to offer and investors are increasingly seeing the potential of Tottenham as an up-and-coming area, particularly with theNorthumberland Project (Tottenham Hotspur’s new stadium) set to rejuvenate the North London suburb with jobs, trade and tourism. So, even on the outskirts of London, you can expect to demand very decent rents and bring in very steady, regular rental income. Also, with the demand/supply issue still not being resolved, the trend of people renting for the long-term shows no signs of ending anytime soon. As the population of London continues to grow, previously unheralded areas will be given the chance to thrive. The areas Kings Group operates in all benefit from excellent transport links and proximity to Canary Wharf, the City and the West End. Hackney, in particular, is very popular among artists and creatives, while Walthamstow retains a villagey feel that leaves you wondering whether you are still in London at all. For more information about the lettings services we offer, please contact us on 01707872000. We also offer a free instant valuation to give you an accurate estimate of what your rental property could be worth in the current London market. https://www.kings-group.net/blog/