The latest report from London based estate agent Foxtons suggests that uncertainty surrounding Brexit and increased supply putting pressure on rents dominated the capital’s lettings market at the end of 2016.
Looking at the performance of the London lettings market in Q4 of 2016, the agent said there was an upward spiral in the number of renters from Western Europe. This indicates that there is recovering confidence in the market despite external influences.
More findings from the report show that average rents in London continued to fall during the final quarter of the year. The report shows that this impact was more prominently seen between Zones 3-6.
However, gross yields remained largely consistent.
Additionally, the publication of the Housing White Paper earlier in February bought with it encouragement for the private rental sector. It appears to offer greater security for renters with the promise of more longer-term tenancy agreements.
Average rents falling in London
Sarah Tonkinson, PRS Director at Foxtons, observed: ‘We see the policies set out in the White Paper as a positive start to increasing availability of affordable homes and improved lettings conditions for renters.’
‘The developing Private Rented Sector will make a substantial net addition to London’s rental stock and provide much-needed long-term tenancies with emphasis on providing high-quality service and accommodation, in line with the new White Paper guidlelines,’ she added.