New research has revealed that some areas of the prime lettings market in London are experiencing a revival, with locations outside of the city centre performing.
Wealthy investors in suburban locations will be pleased to see the latest report from Benham & Reeves Residential Lettings. According to the investigation, those in outer locations of London with good transport links to the centre saw the largest rent rises in 2016.
Prime London Rent Rises
The report shows that Colindale in North London led the way for growth in prime locations, recording rental rises of 4.7% in the course of the year. However, areas such as Oxford Street has also seen good year-on-year increases.
In fact, a number of prime central London locations that have previously struggled saw average rental values rise by 4% or more.
What’s more, Benham & Reeves’ research revealed that the average length of a tenancy during 2016 was 17 months. Previously, this was less than one year, indicating that tenants are looking to rent and achieve stability for longer. As such, despite landlords not being able to obtain higher rents, their total income is greater thanks to less void periods.
Marc von Grundherr, Lettings Director of Benham & Reeves, said: ‘There is no doubt that landlords have had a tough time of late. Rising taxes and stamp duty rates have taken their toll. These latest figures, however, demonstrate that for those who are able to ride out the tough times, the market will eventually turn back in their favour.’
‘We don’t want to be too optimistic just yet as things are still undeniably difficult for many amateur property investors but nothing could be as bad as 2016,’ Mr von Grundherr.