London Rental fees fall for Landlords to Accommodate Existing Tenants
Buy to let remortgage figures along with the rest of the buy to let market has been especially strong during the last two years in the Capital City. As a way to provide passive money, the demand in the buy to let market has been exceptionally fruitful. The reason – over the top lending criteria, along with high inflation and unemployment has forced many to turn to the rental side in search of a dwelling. This has been true for those wanting to rent their own property as well as those first timers who cannot secure a mortgage loan. So there has been little problem filling rental properties with tenants in London. Demand though seems to be slowing, according to the latest market report by Cluttons. Rental cost in London fell by almost 0.5% during the last quarter of 2011, after months of consistent growth.
The price decrease is seen by most as a way for landlords to avoid the problem of having void periods of tenants and make sure the pricing is competitive with other areas. The root of the problem being employment issues with a lack of job promotions taking place as well as anxiety over holding down a job in the city.
Relocation agents as well as tenants are now looking elsewhere in many cases, as the employment environment continues to remain in a stale state. Islington and the surrounding areas are being considered by some as a dwelling which still offers a quick commute into the city of London.
Lynn Hilton, a partner for residential lettings with Cluttons, remarked on the rental market of the city, saying: “The remarkable growth in rental values seen last year could not continue and this correction in values will bring the market back to a more stable level.”
She continued: “While there is considerable economic uncertainty, we don’t anticipate a drastic reduction in rents as demand is still high, but tenants will undoubtedly welcome increased choice and negotiating power.”