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

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...
 
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...
 
Demand for Property to rent in London Continues to Soar
Published by John M. Alcorn on June 8th 2012 | Real Estate
Now is a generally good time to be a landlord in London. Tenant demand is rising at a rapid pace whi...
 
Know about property management in Marlow
Published by Ricky Charles on January 4th 2012 | Real Estate
In most parts of the world, property rates are going up and people who have invested in property are...
 
Are you looking after office space for rent in India?
Published by Mike Nicholson on June 12th 2012 | Real Estate
Want to avail space for your office in the most happening part of India? Looking for standard office...
 
Best price property for sale in Mumbai
Published by Andy Wagon on February 14th 2012 | Real Estate
Owning a home is more than one can indeed serve as an investment in the future, especially if house ...
 
When you’re spending it large for property it’s advisable to ease up the conveyancing process
Published by Himton Thomas on February 12th 2012 | Real Estate
If you are looking for a cheap and good conveyancing, you need to keep a few things in your mind....
 
How much price for rent a home in your city?
Published by Andy Wagon on February 15th 2012 | Real Estate
Whether you're looking for houses for rent? If you really want a house with a fairly competitive pri...
 
Strata property investment advantages
Published by Chris Whelan on December 27th 2011 | Real Estate
In almost every country strata management property investment is getting more popularity due to its ...
 
Wise decision on strata property investment
Published by Chris Whelan on January 18th 2012 | Real Estate
Making right decision before investing on strata property is always praise worthy work; because ever...
 
Finding properties to sale or rent in Chessington
Published by Glyn Jones on January 21st 2012 | Real Estate
An reliable and reputable estate agents makes it quite easy to find the respective properties for sa...
 
Investment in Real Estate property in Gurgaon
Published by Pioneer Urban on June 18th 2012 | Real Estate
Real Estate these days has become one of the most dynamic areas of investing and buying. The real es...
 
How to choose a good property in Bangalore
Published by Andy Wagon on February 15th 2012 | Real Estate
If you currently want a property and were looking for, then there are many references that can be us...
 
Bookings of residential property in Gr Noida is back on track
Published by Sanjay Kumar on July 20th 2012 | Real Estate
Apartment bookings in Greater Noida close to Delhi have resumed once authorities recently approved a...
 
Get the best value of your property with Folsom Property management
Published by Nishaidhijames on August 23rd 2012 | Real Estate
Sale and purchase of property is an important part of man’s life. A person always tries to buy a h...
 
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...
 
The contribution of property management companies of Dallas
Published by Nishaidhijames on August 10th 2012 | Real Estate
A city which is located on an area of 343 square miles with about 1,299,543 of population and also t...
 
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...
 
Look for the flats and apartments for rent in Ahmedabad
Published by Simmie on November 28th 2011 | Real Estate
Ahmedabad is the city which is usually recognized as the city of individuals and this is one of the ...
 
Choosing trustworthy property consultant is beneficial
Published by Deepti on May 4th 2012 | Real Estate
Mohali is a full-fledged market of real estate. It is major part of tricity though it has now a sepa...