Residential Land featured in The Evening Standard
With London’s rental market maturing, developers are finally caching on and building new homes to let rather than sell, says David Spittles.
Developers have missed a trick in recent years by failing to cash in on London’s maturing rental market. More than half the numbers of new flats sold are bought by investors and up being rented out. Finally, Building for rent is breaking into the mainstream. London’s estate landlords – such as Grosvenor and Cadogan – were the first to change tack.
New and refurbished flats are now let on assured shortholds rather than on enfranchiseable leases. These way freeholders can keep possession while enjoying a regular income steam and a rising asset. The logic of this strategy is now dawning on developers. There is growing demand for mid-market rentals – good quality apartments conveniently located in inner London and suburban town centres, boasting good commuter transport links. Another incentive for developers is that the footloose nature of tenant means homes could be builds on sites that may not be suitable locations for owner-occupiers.
Roland House - London flats for rent in South Kensington
The Royal Borough of Kensington and Chelsea hardly fall into that category. In this part of London serviced apartments aimed at jet-set executives and rich tourist do brisk business. Now, one of the area’s biggest serviced apartment blocks – formerly The Somerset – has been refurbished and turned in to scheme of 100 flats for rent on a conventional basis. It was an obvious gap in the market, according to developer Residential Land, which is offering tenancies of up to 24 months and paying the deposit (worth up to £3,000) as an incentive. Called Roland House, the development has 24-hour porterage and a gym. Flats are not lavishly fitted out and furnished, but they are comfortable enough for stop-gap tenants.
Shilpa Rao, a teacher at Dulwich College, has moved into a studio apartment there. ‘’I wanted to move somewhere safe. Previously I rented in north London and had some terrible experiences with security.’’
Rents at Roland House start at £350 a week for studio, £450 a week for one-bedroom flat and £650 a week for a two-bedroom flat. For details call 0207 408 5155.
