Annual growth in rents in prime central London reached a relatively cautious 3.4% in June, according to a new report. The surprise general election result has left the lettings market in the popular area of the city optimistic but still to adjust, says the report, which will certainly make interesting reading for those contemplating a professional inventory service in London or elsewhere.
This June figure means that this vital part of the rental market has now recorded yearly growth for 12 consecutive months. This follows previous forecasts by many industry observers that the re-election of the Conservatives to power in May would help to ensure a lengthy period of stability in the market.
However, while the prime central London rental market continues its wait for an expected significant summer rise in its rental values, demand has lacked consistency and rental companies are yet to fully come to terms with an election result that had been far from widely anticipated.
The report also revealed that some areas are seeing higher stock levels, due to landlords having awaited clarity around the general election result prior to deciding whether to rent out their properties.
The health of the prime central London rental market is strongly linked to that of the wider British economy, with stock levels increasing due to some landlords’ conviction that the economy is in better hands when overseen by a majority Conservative government.
However, in response to the report’s findings, property experts have also urged landlords to set realistic asking rents, as the higher stock levels have made prospective tenants choosier. It is not only landlords in prime central London who should remember this, as the national economic picture for the rest of 2015 is uncertain amid a range of factors.
These factors include several major financial institutions contemplating whether government plans for a referendum on the UK’s membership of the European Union and the reclaiming of bonuses paid to bankers should lead them to shift operations outside the country.
This unclear economic forecast could have repercussions well beyond London, so many landlords could benefit from the greater certainty that a professional inventory service from Yellow Oak Inventories LTD could bring to their lives.