New research has revealed that the top end of the lettings market in the Home Counties of England is picking up.
According to Knight Frank, this is due to the influx of tax changes and greater flexibility from landlords. The firm believes that supply and demand in the region have risen due to higher purchase costs at the top of the market making buyers more price sensitive.
Increases in rent
The analysis from Knight Frank assess the prime sector in the counties surrounding London, looking at where tenants spend at least £15,000 per month. Data from the report reveals that the number of properties available to rent in these regions have increased by 56% so far in 2016, in comparison to last year.
In addition, the number of viewings conducted for these properties by Knight Frank offices has more than doubled year-on-year.
Jemma Scott, partner in Home Counties Lettings, noted: ‘When you consider that the stamp duty on the purchase of a £10 million in the Home Counties is £1.1 million, rising to £1.4 million if it is a second home or additional residence, that’s equivalent to more than three years rents.’[1]
High-end letting market in Home Counties is rising
Scott observed that the increase in stock levels has led to increased negotiations for tenants and in some cases, landlords have been flexible in terms of rents.
‘This flexibility can make renting look like an increasingly attractive option, although best-in-class properties, which are in a ready to move in condition with the latest fixtures and fittings are holding their value,’ she added.[1]
Concluding, Scott observed: ‘The Home Counties are often the first destination for individuals moving out of London, while excellent transport links back to the capital and the wealth of outstanding schools mean they’re also favoured by international tenants looking to relocate to the UK, attracted by the abundance of green spaces and a vibrant social and sporting scene.’[1]
[1] http://www.propertywire.com/news/europe/top-end-lettings-market-englands-home-counties-picking/