Chesterton Lettings has reported continued growth in London rental values throughout 2006.
It estimates that in the last three months of 2006 overall rents increased by 3.6%, house rent increased by 3.8% and flat rent increased by 3.1%.
Richard Davies, director at Chesterton Lettings, says: “Good news for landlords is the continual growth in London rental values.
“Chesterton residential trends, Q4 2006, highlights that in the
last three months of 2006 overall rents increased by 3.6%, houses increased
by 3.8% and flats increased by 3.1%.
“The shortage of good quality family houses in central areas such as Hampstead, Kensington and Chelsea is forcing prices beyond the average increase as demand from corporate tenants for these properties continues to grow.
“Rents of central London houses increased by 4.5%, compared with a
lesser increase of 2.2% seen in south-west and west London.
“Comparing Q1 of 2007 with the same period in 2006 we have seen a 10% increase in applicants, resulting in a 15% uplift in agreed tenancies.
“At Chesterton we have also seen a significant growth in activity generated
via relocation agents.
“In many of our central offices enquiries from relocation agents outstripped general applicant enquiries, highlighting that the corporate tenant market is having a strong impact on the overall London lettings market.
“The London property market continues to be a sound investment for landlords who are basing their investment not just on the return but also factoring in capital growth.
“In 2006 annual property price inflation across London reached a high of 36.7%, with central London witnessing the greatest increase at 42.6%.
“South-west and west London saw a lesser increase of 19.5%.”