Following a very successful summer achieving record rent levels the market is showing signs of cooling as supply increases and demand holds steady.
The number of new prospective tenants in prime central London closely mirrored the five-year average in the third quarter of this year. At the more affordable end of the housing market the competition for one and two-bedroom properties has become more manageable, following a bustling summer season. A contributing factor to this change is the decline in the number of Chinese students opting for UK universities. UCAS reported a significant year-on-year decrease of 17.5%, marking the first such decline in a decade. Many attribute this decline to the UK government introducing a significant hike in visa application fees and the immigration health surcharge.
There has been some improvement in the levels of available stock over recent months. According to Rightmove, new property listings were only 12% down, compared to the 37% decrease observed in the same quarter last year. This influx of rental properties has helped alleviate the severe stock shortage experienced in Q1 and Q2. We anticipate this trend continuing as owners of larger properties turn to the rental market while waiting for more clarity on the trajectory of prices in the sales market.
Looking ahead, the rental market is poised for a return to more typical dynamics as the gap between supply and demand gradually narrows. We anticipate rental value growth to revert to more standard levels starting in 2024. In the coming year, we project a 5% growth, which, although not as remarkable as recent surges, still exceeds historical norms. The last time Prime Central London experienced rental growth higher than 5% before the pandemic was back in 2011.
Given this shift in the market, we advise landlords to prepare for more seasonal fluctuations in demand. To stand out in the market, it is essential for landlords to ensure that their properties are in the best possible condition. Moreover, it may be wise to manage price expectations to minimize void periods, particularly as we approach the winter months.
Should you have any questions or require further information about your property investments or rental needs, please don’t hesitate to contact us.
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Fraser Gregory
I started my career in 2008 at one of the largest agencies in the UK before taking the leap into the independent agency sector. I joined Plaza in 2012 and I’ve never looked back. Being part of a boutique family owned agency has been such a rewarding experience allowing me to be involved in every aspect of the lettings process. I have developed my skill and knowledge over the years by successfully passing the NFOPP Technical Award in Residential Lettings and Property Management. A nationally recognised qualification of Propertymark; The National Association of Estate Agents (NAEA) and Association of Residential Letting Agents (ARLA) I’m proud to be part of a company that has been involved in the community for nearly 50 years.
If you want 5-star reviews and want to remove negative reviews from Google, contact me via my profile; my contact details are listed there.
SM
Dear Eitan
In this whole sorry saga, with headbutting, unproactive lawyers, and a comatose estate agent etc etc, you have been a beacon of light throughout. Efficient, professional and responsive. This would never have got done without you.
Thank you.
All the best.
Maurice Shasha
We have been using Plaza Estates for many years for all our property requirements (sales, letting and management) and are delighted with the results and service they constantly deliver and provide!
KS
I generally dealt with the Marble Arch branch most of the time, but I can also say that the Knightsbridge office was also exceptionally helpful and professional on the occasions I did deal with them. Plaza Estates in general are excellent.
YZ
Have interacted with Plaza Estates across a couple of sites and always been impressed. Maurice must be the hardest working, most dedicated, helpful and knowledgeable account manager for any company anywhere! A real asset to the team!
LI
I have been a client of Plaza Estates for over 30 years and received excellent service. Both Rodney on the rental side and Fiona in the property management area have been have been attentive and helpful and always willing to go the extra mile on the few occasions when there were problems.
SA
Hope both of you are doing well. I wanted to thank you for always being there for us and for addressing our concerns promptly; safe to say you have been the best agents I have had the pleasure of interacting with.
KR
We have owned our Flat since 2008, which we purchased through Plaza. Our relationship with Plaza goes back to 1982 when we purchased a nearby flat and Plaza have handled all our lettings since then. I would have no hesitation in recommending Plaza - they will find you a good tenant and ensure your ...
MS
Thank you again for all your advice and calm attitude and charm. Nobody could try harder than you, and for which, we really thank you and appreciate it all, not just now, but over the years.
Thanks again for everything!
