A new hike for London rents has been recorded by Rightmove. According to figures, renters have seen housing costs rise by an above-inflationary 3.4% year on year.
The affordable housing crisis in London and the lack of properties for lower budgets has caused a tremendous demand for homes. As a result, buy-to-let and live out landlords have the opportunity to raise the prices.
“After a few years of more plentiful supply in the London market we’ve now reached a point again where competition among tenants for a great rental home can be very high in the most popular rental areas of the capital,” said Miles Shipside, Rightmove’s housing market analyst.
According to The Association of Residential Letting Agents — Arla — more than one in three tenants have experienced a rent increase in the past year. Experts identify the extra costs from taxes and stamp duty as the driving force behind the rent increases. By this, we see the rental property market in London turning on its head with prices on the rise.
David Cox, chief executive of Arla Propertymark, has underlined that increased taxes and continued regulatory change have seen the market destabilizing, a prediction that property experts had made in 2017.
Copperstones’ lettings team is keeping an eye on rent fluctuations and advises our clients, whether they are buy-to-let landlords or overseas landlords, on their current and future investment strategies. Landlords could capitalise on this new reality but still be cautious since this could not last long. For safe investment opportunities with guaranteed high-return on investments, we usually advise our clients to look for off-plan and new homes since the advanced build quality and the lack of maintenance needs could save them hundreds of pounds while also adding value to their assets. Meanwhile, our company handles special property investment searches around London for those looking for off-market opportunities and exclusive listings.
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