Change in demand and instructions % balance for London, UK.
New RICS lettings survey for January 2009 was released just last week. Read the summary here and download the report here (*pdf).
Market comments from chartered surveyors:
Mark Wilson MRICS, Globe Apartments (London):
Good activity at the lower end and deals are being done where landlords adjust their rental expectation downwards. We can’t see any reason why this trend will not continue.
Lynn Hilton, Cluttons (London):
Rents are falling ‐ demand is from tenants trading down not from new job seekers relocating to London.
Edward Reeve BSc FRICS, Edward Reeve (Pimlico):
Rents for the more expensive flats are still falling but at a much slower rate and since Christmas there is evidence that they are stabilising as lettings are easier to achieve. There is also evidence of slight increase in rents of lower priced flats since the start of the New Year and many more applicants and viewings.
Michael Chouler FRICS, Best Gapp & Cassells (Belgravia):
No corporate market (down massively) Rent reductions ‐ not only at renewal time. Few people moving generally.
Nik Madan, John D Wood & Co. (Kensington):
There is a great deal of oversupply on the rentals market as many would be vendors come to ”mothball” their properties for a year or two by renting them out so as to ride out the recessionary sales market. As a result, these reluctant landlords have helped cause rents, and therefore yields, to fall. Nonetheless, transaction volumes remain high. There is some evidence of foreign companies looking to secure long term rentals with premium lets to take advantage of the weak pound.
James Gubbins, Dauntons (Westminster):
Property oversupply, tenant budgets down result in a falling rental market although activity remains intense. The competition is such that landlords are forced to upgrade or reduce rents to compete with the increasing numbers of properties that are available to rent.
Kevin Ryan, Carter Jonas (Westminster):
We are finally starting to see a reduction in stock as applicants are renting again. Rental prices have dropped approximately 25% in the last six months and now at seemingly more affordable prices, the market is seeing activity.
Ben Temple, Temples (Wandsworth):
The supply of property has increased by 61% over the last quarter. As a result, with tenant enquiries down by 23% rentals have fallen by about 10%. We expect that the rental market will stabilise in the spring with an increase in tenant demand but rental growth is not on the horizon.
Robert Schaverien, Chancellors/ Anscombe & Ringland (Barnet)
Rental values in Finchley have fallen by 10 % plus on one ‐ two bedroom flats. Renewals have either been the same or at rental reductions. The larger properties have fall in some cases by 20 ‐ 30 % due to the lack of the corporate market.
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