Despite the weathers best efforts, Spring is here, and I am pleased to report green shoots of development in the prime London lettings market. After a period of adjustment, February brought a welcome increase in activity and a slight rise in annual rental growth.
While the number of newly agreed lets remains below pre-pandemic levels, it’s encouraging to see a 14.2% rise compared to February 2023. This suggests a growing interest in prime London rentals and property owners being enticed into the market. The current availability sits at 48.1% higher than last year, offering tenants a wider selection compared to the constraints faced in the past 12 months.
There’s also good news for landlords looking to secure strong rental yields. Annual rental growth ticked up to 3.4% in February, placing rents a significant 26.7% above their pre-pandemic average. This upward trend, coupled with a return of balance in terms of void periods and reductions, indicates a stabilizing market. We expect growth and demand to continue, especially at the top end, as many tenants wait for interest rates to reduce before venturing into the sales market.
While the percentage of properties requiring reductions before finding tenants are slightly higher than the record lows of 2022, the average remains at a manageable 4.2%. This figure is nearing pre-pandemic levels, suggesting a healthier equilibrium between supply and demand. From a Landlords perspective, this further indicates the market is becoming more competitive and Landlords should take a proactive approach, ensuring their properties look their best to maximise viewings and minimise void periods going forward. Using the seasonally quieter first quarter to modernise or refurbish a property could prove hugely beneficial in the summer when demand is at its peak. We can assist with all property needs and have a dedicated refurbishment team that can ensure any necessary building consents are in place and contractors lined up and designs approved even prior to the property becoming vacant. Our aim is to ensure a cost-effective refurbishment, carried out to an optimum standard, within as short a time frame as possible.
With the prime London lettings market demonstrating stability and continued positive growth, this could be the perfect time to consider renting out your property. At Plaza Estates our experienced team has a proven track-record of securing high-quality tenants and achieving optimal rental yields for our clients. Get in touch today for a free, no-obligation consultation. We will be happy to discuss your specific property and provide a personalised rental strategy tailored to your needs.
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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!
LT
Thank you for your kind help and your advice, it's been precious!
