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UK Property Lettings Market Update

As the effects of the 2016 SDLT changes have been felt across the country, Winkworth take a look at how the property lettings market has held up across the UK.

The UK lettings market has already begun to see the effects of the now-infamous 2016 SDLT increase of 3% for those purchasing a second property. As more landlords are leaving the sector, fewer lettings are available which means that demand is no longer being met. 117,500 buy to let mortgages were granted in 2015, but this number fell to 74,900 in 2017. In a recent survey conducted by ARLA (the Association of Residential Letting Agents), 59% of lettings agents say that they expect rents to rise in 2018, compared with just 19% who expect them to fall.

In line with the pattern of the past five years, the market across the UK has generally been robust for smaller properties, where demand is driven by younger households on good salaries who are struggling to raise a deposit. Toby Powell, Director of Winkworth Brighton & Hove comments; ‘Young couples probably account for 80% of our rental market. Rental values are increasing, ever so slowly, with less affordable property for people to buy within the city, therefore more young people need to rent, and in turn that increases demand.’ As a consequence, rents for one-and two-bedroom properties have continued to rise over the course of the past year, as these are the most sought-after.

London and country are two very different climates. In Blackheath, where sales values have generally held, lettings properties have seen a small decrease of 1-2% over the past year. ‘The market has been slow, high rental prices have dropped mainly due to the instruction levels increasing. At the end of last year, we had less properties available, so the current increased level has made getting asking price offers a little harder to achieve. However, the overall pace of the market isn’t any different,’ says Steve Brown of Winkworth Blackheath.

In Shepherds Bush, on the other side of London, it’s not a dissimilar story; ‘We had a slow start to the year with the number of enquiries down, which therefore put downward pressure on the rents. That said, we expect things to rebalance over the next few months as we enter our traditionally busiest period. We are already taking viewings and enquiries for September, so I would expect the year to follow a similar pattern to 2017’, comments Mili Burton, Lettings Manager at Winkworth Shepherds Bush & Acton.

Rents in commuter towns are generally holding well. In Reading the market is buoyant, with plenty of demand for good quality properties from applicants – particularly those working in the Thames Valley. ‘Rents have remained constant over the past year here, and activity is due to increase over the summer months leading up to autumn,’ says James Hathaway, Director of Winkworth Reading. ‘My only concern is that there are a large number of new apartments being built at the moment, which could mean that we see a glut of rental properties being released to the market, which may have some short-term negative impact on rents.’

As the lettings fee ban, announced in 2016, is now likely to come into play in 2019, tenants should feel more secure in their dealings. The overall outlook for the remainder of the year is positive, with the unanimous advice being that in a trickier market it is imperative to present your property in the best possible condition, ready for a busy market.

Here are some of the top properties we currently have available to let...

Edith Road, W14, £415 p/w  (£1,798 pcm)

A stylish two bedroom, two bathroom flat on the raised ground floor of a mid-terrace Victorian house.
For more information please visit Winkworth Hammersmith or call 020 7371 4466.

Sinclair Road, W14, £415 p/w  (£1,798 pcm)

A spacious two bedroom flat on the raised ground floor of a mid terrace Victorian house
For more information please visit Winkworth Hammersmith or call 020 7371 4466.

Sulgrave Road, W6, £460 p/w  (£1,993 pcm)

A newly refurbished two double bedroom flat with private roof terrace arranged over the top two floors of a mid-terrace Victorian house.
For more information please visit Winkworth Hammersmith or call 020 7371 4466.

Batoum Gardens, W6, £550 p/w  (£2,383 pcm)

A substantial three double bedroom maisonette, arranged over the top two floors of an end of terrace Victorian house.
For more information please visit Winkworth Hammersmith or call 0207371 4466.

Faroe Road, W14, £900 p/w  (£3,900 pcm)

A superb four bedroom house on this sought after street in the heart of Brook Green.
For more information please visit Winkworth Hammersmith or call 020 7371 4466.

Thinking of selling or letting your property in our area? Please contact us.

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