May 28, 2019
London lettings market update for landlords
As we move towards the heart of the summer, it’s time to take a look at what’s been going on in the London lettings market.
Of course, the big news is that the Tenant Fees Act comes into force on June 1. This means landlords (and agents) will no longer be able to charge renters upfront fees. However, there are three exemptions: lost keys, late rental payments and changes to the tenancy agreement.
What’s more, security deposits are being capped at five weeks’ rent. And holding deposits at one week’s rent.
You can see the government’s full official guidance here. Please don’t hesitate to contact Atkinson McLeod if you have any queries about the tenant fees ban.
So, what else has been going on in the London lettings market?
Call for ban on short-term lets Underground adverts
The Residential Landlords Association (RLA) and the London Assembly’s Labour team have called on Sadiq Khan to ban adds for short-term lets websites appearing on the London Underground.
They argue that an increase in short-term lets via sites like Airbnb is limiting the number of long-term rental homes available for Londoners.
The RLA says, for example, that London listings on Airbnb increased by 60% in 2017. And it continue to grow.
There is a limit in place which means London properties can only be let on a short-term basis for 90 days per year. However, the campaigners argue this rule is being flouted which is causing problems for rental housing stock.
London lettings market performing well despite Brexit
Some good news for landlords…Investment consultancy London Central Portfolio recently reported that in the first quarter of 2019 average rents for renewals rose by 0.2%. Meanwhile, rents for re-lets increased by 0.1% during the same period.
Albeit only small rises, these figures reflect the stability of the London market during a time of uncertainty.
“The average length of tenancies is increasing, standing at 455 days in 2018. The anticipated exodus of citizens from the EU27 following the Brexit vote has not materialised,” said LCP chief executive Naomi Heaton.
London rents continue to rise ahead of fees ban
As mentioned above, the tenant fees ban is set to have a significant impact on the rental sector when it is introduced.
But as the market has been preparing for the new laws, HomeLet data shows rents in the capital have been rising steadily.
The average monthly rent in the capital, according to HomeLet, now stands at £1,617. This is 1.8% higher than at the same time last year.
These figures again show that London landlords can continue to generate solid returns. You can achieve this by having an effective strategy in place. And by working alongside a reputable letting agency such as Atkinson McLeod.
For advice on letting, selling, buying or renting a home in London, please get in touch with Atkinson McLeod at one of our many branches across the capital.
To find out how much your home could be worth to let or for sale, why not request a free and instant online valuation today?