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Late summer tenancies give London landlords a boost
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Landlords in the capital have been provided with a late summer rental boost, according to a new report compiled by London estate agent Portico.
Research from the organisation suggests that landlords in the region whose tenancies begin in the back end of the summer achieve rents 11% higher than those starting in December.
Increases
The firm suggests that a reason for this surge in prices is down to a 10% reduction of available housing supply in September, combined with a 64% increase in tenant demand. This is primarily driven by the student and graduate markets.
Portico says that it gets double the amount of enquiries per property in September, in comparison to the national average. In addition, the firm said this figure was four times the number of enquiries per property than in December.
Late summer tenancies give London landlords a boost
Fluctuation
‘We are advising landlords to take advantage of these seasonal fluctuations which can see rental income boosted,’ said Robert Nichols, director of Portico. ‘With much smaller void periods and higher rents, landlords should seriously consider inserting a break clause at the next renewal point in their tenancies to re-synchronise tenancy dates. A tenancy starting in September is just good business.’[1]
Just last week, a report from the Association of Residential Letting Agents indicated that the supply of rental property fell in August, from an average of 189 properties per agency in July to 178. In addition, the report confirmed that fewer letting agents reported rent increases during the last month.
[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/late-summer-tenancies-provide-london-landlords-with-11-rent-boost
