As we finally welcome a resemblance of summer in London, we are pleased to share our latest insights on the state of the rental market and what the short-term future holds, especially with the upcoming general election.
Current Market Overview
The rental market across prime London has been experiencing some noteworthy trends. While the pace of annual rental growth has slowed in May, it’s important to note that rental prices remain robust, standing 28.3% above their pre-pandemic average from 2017-2019. In May, we observed a 4.7% annual increase in lets agreed and a 6.3% rise in new instructions. However, activity is still below pre-pandemic levels. The increased supply has eased pressure on rents, with 20.3% more properties available for let than a year ago. This uptick in supply has unlocked more deals, with lettings activity for 2024 running about 10% ahead of last year.
Rental Growth Insights
Diving deeper into rental growth, we’ve seen varying trends across different property types. Larger flats (3+ bedrooms) have shown remarkable resilience, with values 31.4% above their January 2020 level. Houses have also performed well, with a 29% increase. However, smaller flats have seen slower growth, reflecting the evolving demands and preferences in the post-pandemic market. This market is now influenced by a more seasonal demand, particularly with international students seeking accommodation in the summer for the upcoming year.
The Political Landscape
As we approach the general election on 4th July, many believe Rishi Sunak has been served notice, and we’ll soon have a new tenant at Number 10. Time will tell. While the call for an election stalled the Renters Reform Bill, both major parties have pledged to abolish Section 21 eviction powers and introduce other private rental sector reforms. It is likely we will see these changes implemented within the next 12 months.
What should be key for any government is ensuring a fully functioning Private Rented Sector that supports both landlords and tenants. Ensuring stability and mutual benefit is essential for promoting growth and generating income for the economy. Regardless of the election outcome, we remain committed to navigating any legislative changes and supporting our clients through any transitions.
Looking Ahead
Despite the fluctuations, the overall market sentiment remains positive. The increased supply and steady demand indicate a balanced market poised for continued growth. We encourage landlords to stay informed and proactive in managing their properties, ensuring they are well-presented to minimize void periods and secure the best possible rental prices.
If you have any questions or need personalized advice, please do not hesitate to contact our team. We are here to help you make the most of the current market conditions and navigate the future with confidence.
Thank you for your continued trust in Plaza Estates. We look forward to assisting you with your property needs this summer and beyond.
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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!
