Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Rents in London expected to rise in 2012

By John M. Alcorn Subscribe to RSS | February 2nd 2012 | Views:
loading
 
  



With rents rising across much of the capital, property investment conditions for landlords in London have arguably never looked so good.

According to the latest HomeLet Rental Index, the average price of a home in London is edging ever closer to £1,200 per month.

John Boyle, managing director of HomeLet, said: "The soaring cost of renting a home in the capital, compared to the rest of the UK, reflects how demand for rental properties is increasing due to people’s continuing struggle to get onto the property ladder.

"This demand offers a fantastic opportunity for landlords and property investors who could offer a much needed supply of rental properties to the industry."

But with the London 2012 Olympics fast approaching, rents across the capital are expected to rise further in the coming months, as demand for property to rent in London will almost certainly soar, particularly in prime locations.

Many central London estate agents report that they are coming under increasing pressure from landlords to significantly increase rental prices in the run-up to the Olympics, which takes place in the summer.

Estate agents Foxtons is advertising Olympic lets at record-breaking prices. For instance, the company is marketing a penthouse in Knightsbridge at an asking price of £100,000 a week as an Olympics let.

A company statement on its website said: 'With millions of visitors expected to London during the Olympic period, short term rental accommodation and holiday lettings are expected to be in strong demand.’

'To meet this demand, London will have approximately 100,000 hotel rooms as well as university and college halls of residences and other student accommodation, but the majority of visitors to the Games may opt for private, short term rentals.’

With rental prices rising across London, there is currently a limited volume of homes available for sale, as more landlords hold on to their property assets, while generally looking to add to their portfolios.

This is particularly the case in central London, where demand for rental accommodation in some of the most sought after areas, such as Mayfair, is sky-high, according to various Mayfair estate agents.

Marylebone, an affluent area in central London, is another area attracting a lot of attention from tenants, driving greater demand for flats and houses to rent in Marylebone.

Marylebone-based estate agent Sandfords report that there is no shortage of people wanting to buy homes in Marylebone, where rents can reach well in excess of £1,000 per week.

Andrew Ellinas, director of Sandfords, commented: "Property prices remain stable and vendors who seriously want to sell are doing so very quickly if the price is realistic, but few property owners want to sell because central London property is one of those rare classes of wealth that is retaining its value in a world where inflation is creeping up and stock market yields are volatile."

Aside from rising rents, market conditions are favourable for many buy-to-let landlords because of low mortgage borrowing rates.

The Halifax says that mortgage payments for a new borrower in the second half of 2011 were at their lowest as a proportion of disposable earnings for 14 years, due mainly to cheaper property mortgage borrowing rates, and this looks set to continue.

Trevor Abrahmsohn of high-end estate agents Glentree Estates believes that the market in central London will continue to be underpinned by low interest rates and long-term mortgage borrowing levels.

He said: "Interest rates and long term mortgage rates are almost guaranteed to be either static or very low in 2012 which will help underpin the market."

John M. Alcorn - About Author:
John Alcorn talks to various Mayfair estate agents and finds that demand for property to rent in London is booming, particularly houses to rent in Marylebone.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/real-estate-articles/rents-in-london-expected-to-rise-in-2012.htm

Related Real Estate Articles Subscribe to RSS

Real estate agents for your property needs
Published by Glyn Jones on June 4th 2012 | Real Estate
The estate agents can help find the right kind of properties that suits your specific requirements a...
 
Get a good office property in Gurgaon
Published by Atul Sharma on May 21st 2012 | Real Estate
The article is based on real estate property in Gurgaon. It talks about how you can get a good prope...
 
Rules when renting a property in Malaysia
Published by Jeevan Nanthan on June 10th 2012 | Real Estate
This document describes all the terms and conditions about the contract in detail. In case of violat...
 
Tips before choosing houses to rent
Published by Vicky Martin on April 11th 2012 | Real Estate
When you are looking for flats or houses or other rental properties there are few things that you ar...
 
Sell a house and rent it back
Published by Vicky Martin on April 25th 2012 | Real Estate
While the simple action of sell house rent back is straight forward there are some implications that...
 
Letting agents can help find good property
Published by Matthew Watson on June 4th 2012 | Real Estate
The letting agents have a critical role to play with the rental property letting. For tenants they c...
 
Sell property on the internet
Published by Glyn Jones on April 23rd 2012 | Real Estate
Internet estate agents make it easier, faster and more convenient for property owners to sell their ...
 
Get best property deals through web portals
Published by Maaya on May 15th 2012 | Real Estate
It has become a trend to buy and purchase the property in metro cities, thickly populated and it als...
 
The demand of property in Delhi NCR
Published by Maaya on May 24th 2012 | Real Estate
Having an own land or property in Delhi NCR is like a dream, the prices of properties are increasing...
 
 
Seeing the Huge Benefits in purchasing property in Greater Noida
Published by Sanjay Kumar on August 9th 2012 | Real Estate
The investment within the property will never move into vain as a result of the property rates withi...
 
 
Know some facts before getting in contract for property buying
Published by John Mathews on July 20th 2012 | Real Estate
While you are looking to buy a home, there are certain things that you are to take into consideratio...
 
Lease your property for commercial strata management
Published by Chris Whelan on January 25th 2012 | Real Estate
Everyone should follow some qualified process during leasing their commercial strata management prop...
 
Apartment for rent in Delhi Best Accommodation
Published by Simmie on November 28th 2011 | Real Estate
In Delhi the property prices have reached to its maxima but still the demand is constantly rising. B...
 
Equity for buying strata property investment
Published by Chris Whelan on January 3rd 2012 | Real Estate
Equity in strata property is helping most to fulfill their dream of owning a property and can save m...
 
Reasons to buy commercial property in India
Published by Mike Nicholson on June 12th 2012 | Real Estate
Although there are numerous investment avenues in India to invest in, but there is no guarantee that...
 
Look out for the best property in Houston, Texas
Published by Brad Hermes on May 25th 2012 | Real Estate
Houston real estate market is reaching great heights in the United States. As the demand of housing ...
 
Why one should invest in property in Greece?
Published by Greekexchange on January 10th 2012 | Real Estate
Greece is one of the most beautiful places in the world; people from all over the world visit this c...
 
Looking to buy property in Gurgaon? are you on right track?
Published by Mike Nicholson on February 10th 2012 | Real Estate
If you’re planning to buy property somewhere in and around Gurgaon, this article is primarily mean...