Spotlight: 

Prime Rental Market

Prime Rental Market
Prime Rental Market

17 January 2017, by Lucian Cook

Challenges in the buy-to-let market continue

■ Over 2016, prime rents across London fell by -5.1%, with rents in the commuter zone falling by -0.9%.

■ In the prime London rental market, new build completions, buy-to-let investors and accidental landlords have created an unprecedented amount of stock. As such, tenants can afford to be picky and prices have fallen.

■ Weaker demand from corporate tenants in the London commuter zone has resulted in price falls for larger properties. But continued demand from young professionals means smaller properties are expected to remain popular.

 

■ For the mainstream market, successive tax changes, as well as mortgage regulation yet to come, is expected to mean a fall in buy-to-let activity for mortgaged investors. Those who continue to invest will be looking for lower value, higher yielding markets.

■ Cash buyers will not be affected by this mortgage regulation but their ability to expand their portfolios may be constrained. As such, this may limit stock coming to the market and put upward pressure on rents.

Articles from Spotlight: Prime Rental Market – January 2017

Prime rental market

17 January 2017

Prime rental market

Despite being price sensitive the prime rental market has remained relatively active

Mainstream rental market

17 January 2017

Mainstream rental market

Successive tax changes, as well as mortgage regulation yet to come, is expected to mean a fall in buy-to-let activity for mortgaged investors

 
 

Receive the latest research

Key contacts

Lucian Cook

Lucian Cook

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3837

 

Kirsty Bennison

Kirsty Bennison

Associate
Residential Research

Savills Margaret Street

+44 (0) 207 016 3836

 

Gaby Day

Gaby Day

Research Analyst
Residential Research

Savills Margaret Street

+44 (0) 207 299 3003