Local Insight KNIGHTSBRIDGE AND BELGRAVIA LETTINGS

SNAPSHOT NOVEMBER 2012
Local Insight
KNIGHTSBRIDGE AND BELGRAVIA LETTINGS
Juliet Hill and Tom Smith discuss how the lettings market performed
over the last six months, expectations for the year ahead and who is
looking to rent in the area.
How did the market perform over
the last six months?
The best thing to happen to the
market would be..?
Knightsbridge and Belgravia
lettings market at a glance
We have had such an exciting summer
in London and the market was buoyant
especially in August and September. In
the run up to the summer there was an
oversupply of properties to rent, however
the busy summer months corrected any
oversupply issues which was good news
for Landlords.
For levels of employment to increase in
the Corporate sector in Central London.
This would require a stronger performing
London economy and better news from the
Eurozone.
Figure 1
Tenancies by price band
Tenancies agreed, past 6 months
Rents have been on a modestly downward
trend since October last year, but the
volume of lettings has risen reflecting a
broader shift in favour of the rental sector
across the UK. The current weakness in
headline rents is not necessarily evidence
of a downturn in demand but more a
reflection of the constraints on affordability
and the weaker performance of London’s
economy.
Outlook for next six months?
There are no obvious signs at the moment
of stock levels increasing again. However,
if the sales market slows a bit and their
stock levels rise we may see more of that
stock move across to the rental market.
Our forecast for 1% growth in 2012 may
be slightly too optimistic, but we are
confident in our expectation for stronger
positive growth in the medium term.
Who’s looking to rent at the
moment?
There has been an increase in the different
nationalities of tenants looking to rent
in Central London and with applicants
becoming increasingly younger. Another
trend that we have noticed in the last six
months is an increase in tenants renting
whilst they either look for something to
buy or they have bought already and are
in the process of modernising an existing
purchase.
Over the last month or so we have seen
the usual influx of high net worth students
looking for good one or two bedroom flats
to rent at the start of the new academic
year. We also had tenants looking for
family houses, though this demand came
early this year in June/July.
There has
been a marked
increase in
the different
nationalities
of tenants
looking to
rent in Central
London.
The worse mistake a Landlord can
make?
With Tenants showing restraint on
affordability it is important that
properties are well presented and fresh
to maximise rental returns. In Belgravia
and Knightsbridge more and more tenants
are looking for ‘turnkey’ properties. It is
also important to be competitive in terms
of asking rents. Landlords should ask
their agents for comparable evidence of
properties that have recently let (not those
currently on the market).
All the above can help to reduce the length
of void periods between tenancies.
Figure 2
Nationality of our Tenants
Tenants, past 6 months
SNAPSHOT NOVEMBER 2012
Local Insight
KNIGHTSBRIDGE AND BELGRAVIA LETTINGS
Charting the Knightsbridge and Belgravia market
Figure 3
Source of our tenants
Tenants, past 6 months
Figure 5
Return on investment
Prime London residential gross
yields, past 5 years
Figure 4
Market activity
Last 6 months, year-on-year change
Figure 6
Wider market performance
Prime London (rental prices) vs
FTSE 100, past 5 years
Knightsbridge and Belgravia properties
To LEt
TO LET
Duplex apartment in
outstanding development
An immaculate lateral
apartment
ONE HYDE PARK
EATON SQUARE
3 bedrooms
£16,500 per week
3 bedrooms
£2,650 per week
TO LET
TO LET
Contemporary flat in
garden square
A spacious recently
refurbished flat
Lennox gardens
CHESHAM STREET
1 bedroom
£775 per week
1 bedroom
£525 per week
LET BY
LET BY
Lovely house in great
Knightsbridge location
Luxury mews house
CADOGAN PLACE
GROSVENOR GARDENS
MEWS NORTH
4 bedrooms
£2,350 per week
5 bedrooms
£7,950 per week
Knight Frank Knightsbridge Lettings
Knight Frank Belgravia Lettings
+44 (0) 20 7591 8601
[email protected]
60 Sloane Avenue
London SW3 3DD
KnightFrank.co.uk/Lettings
+44 (0) 20 7881 7730
[email protected]
82/83 Chester Square
London SW1W 9HJ
KnightFrank.co.uk/Lettings
Juliet Hill
Head of Knightstbridge Lettings
+44 (0)20 7591 8601
[email protected]
Tom Smith
Head of Belgravia Lettings
+44 (0) 20 7881 7730
[email protected]