Property developers are raising the standards of rented accommodation as demand for homes grows.
Renting has bounced back into fashion. In the wake of the credit crunch, would-be buyers are sitting on the sidelines waiting to see how the property market performs during 2008. This is good news for many established buy-to-let landlords in London as increased tenant demand is pushing up rents and reducing void periods. One-bedroom flats in the Borough and Bermondsey area (SE1 postcode), for example are achieving £400 to £425 a week against £300 to £340 a year ago, according to lettings agent Cluttons.
A few smart developers anticioated the sales slowdown and switched to the rental sector. Residental Land has built up £486 million property portfolio of 1,200 flats to become one of the largest private landlords in the capital.
Roland House. London flats for rent.
The company buys, refurbishes, markets and manages the buildings itself, meaning that tenants do not have to deal with estate agents. House are available for rent, too.
Central London location include Ecclestone Place, Belgravia, SW1, where rents start at £575 a week. At Roland House, Old Brompton Road, SW5, rents start at £360 a week.
‘We have a vested interest in managing properties efficiently because we want long-term, happy tenats,’ says managing directr Bruce Ritchie.
Ken Livingstone’s new housing strategy for London envisages a wider role for the private rental sector, which is still plagued by bad landlords. The aim is to follow the German example and get big, reputable property companies involved. ‘ The private rental sector in London is bigger than either housing association or council provision,’ says Ian Fretcher, director of the British Property Federation. ‘What is needed is massive corporate investmen to build homes for rent that give people security, choice and quality.’
Hamptons International reports that rents have increased by up to 40 per cent over the past 12 months. ‘We have seen a 17 per cent rise in the number of applicants, with more tenants signing up for two-years contracts,’ says letting director Kate Whotton.
Increasingly, buy-tolet investors purchasing new flats off-plan are being offered rental guarantees. At Galliard schemes in Clapham and Greenwich, buyers receive a six per cent rental return for two yaers from completion, and six per cent interest on their deposit money between exchange of contracts and completion. At the former Freemans catalogue factory site.
Residential Land has a large selection of properties to rent in London. As one of the Capital’s largest private landlords, we are residential property experts specialising in the acquisition, sale, rental and management of our portfolio of over 1,200 flats in London. Based in the heart of Mayfair, the Residential Land team invest at an institutional level acquiring increasing numbers of properties in our specific areas of operation.
