Rental values climb across the tube
There has been a recent change in the London market with rental values along the tube increasing whilst August saw the 1st asking price drop in the capital this year.
London’s pandemic rental market slump has seemingly passed. There is an increased demand for quick and convenient London commutes and this has pushed up tube rental values considerably in the last year alone and the fact that much of this growth has been focused on central London areas is an even more telling sign that the capital is back to its best.
Those looking for a tube-stop adjacent rental property can expect to pay a premium for the pleasure. However, whilst rental prices have increased, the average asking price in London has fallen for the first time this year.
Home sellers in London cut £23,400 off their asking prices in August, as interest rate rises finally took their toll on house prices, new research shows. Asking prices in London fell by 3.4% to £668,587 compared to July, according to property website Rightmove.
Tim Bannister, Rightmove’s Director of Property Science, said: "A drop in asking prices is to be expected this month, as the market returns towards normal seasonal patterns after a frenzied two years, and many would-be home movers become distracted by the summer holidays."
Tom Bill, head of UK residential research at Knight Frank, sees prices continuing to fall over the coming months. “Demand will start to fray from the autumn as rising mortgage rates bite and the cost-of-living squeeze intensifies, which will mean lower house price growth across the whole country.”
Is this a temporary decrease in London house prices or might this be the start of increased demand in buy to rent across the capital? We look further into the locations at possible BTR opportunities where rents have increased the most and where house prices have dropped.
References
property notify @ bit.ly/3R71pmU
ONS @ bit.ly/3COX5V2
gov @ bit.ly/3AHhN6z
introducer today @ bit.ly/3q4FUHw
standard @ bit.ly/3TCUW4z
rightmove @ bit.ly/3edd6tw
mirror @ bit.ly/3cBrgEi
telegraph @ bit.ly/3q38aKl
simply business @ bit.ly/3cExvau
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