020 7223 3837
108 Streatham High Road, London, SW16 1BW
020 7223 3837
108 Streatham High Road, London, SW16 1BW
estate agents
020 7223 3837
108 Streatham High Road, London, SW16 1BW

With life returning to the capital, it is fair to say things are on the up for many landlords. There is a feeling that demand is continuing to rise for rental property in London, creating a chance for landlords to enjoy the best return on their investment.

If you are a landlord in or around South West London, and you are looking for assistance in reaching out to tenants, or managing your rental property, we are more than happy to assist you. Please contact Holmes Estate Agents for guidance and support in the London lettings market.

What do landlords think?

According to the latest study carried out by Paragon Bank, which spoke to more than 600 landlords, the following findings were made:

  • 69% of landlords have reported an increased level of demand for rental property

  • 36% of landlords stated the increased level of demand for rental property was “significant”

  • 79% of Landlords in the South West of England reported an increase

  • 74% of Landlords in the South East of England (excluding London) reported an increase

  • 59% of Landlords in the North East of England reported an increase in demand for rental property

  • 54% of Landlords and property managers in London reported an increase in demand for rental property

Richard Rowntree, Paragon Bank Managing Director, said: “Landlords have been recording rising levels of tenant demand following the first lockdown, which reflects the shift in housing need created by the virus. The third quarter of the year is usually a busy one for the private rented sector (PRS) with graduates starting new jobs, the beginning of the academic year and people turning to housing once the holiday season is over. With this seasonal demand added to already high levels of tenant demand, we are beginning to see a shortage of property in certain parts of the PRS, which is leading to rental inflation. The sector needs to expand to meet these exceptional levels of tenant needs. Recognising this, lenders can assist investors with products and service that supports them in responding to the needs of a diverse and growing mix of tenants.”

Aim for a better rental yield

Research undertaken by Sequre Property Investment, suggests the average rental yield in Great Britain remains at 4.2%.

Regional variations include:

  • The North West experiences a rental yield of 5.4%

  • Scotland has an expected rental yield of 5.1%

  • Yorkshire and the Humber has an expected rental yield of 4.8%

  • The North East has an expected rental yield of 4.8%

  • The expected rental yield in Wales is 4.7%

  • The West Midlands offers an expected rental yield of 4.3%

  • London has an expected rental yield of 4.3%

Daniel Jackson, Sales Director at Sequre Property Investment, commented: “The property industry has shown impressive resilience throughout the pandemic, but even the most optimistic of landlords were probably expecting profitability to take a dive during such uncertain times. Yet yields have refused to show any notable levels of decline and the buy-to-let sector remains a very strong investment option at present. The reason is that, even though house prices have gone up by an average of 10%, rent values have gone up by more still, 11%, to negate any negative hit on yields.”

Daniel Jackson concluded by saying; “One thing is for sure, Northern Britain remains the best, most rewarding place for buy-to-let landlords and investors to build their portfolios and not even a global pandemic can do anything to change that.”

While the average rental yields represent a good starting point, it is possible to achieve more. We are pleased to say we have helped many landlords achieve a better rental yield, and if you are looking to achieve this outcome, we are more than happy to assist you; so please get in touch.

We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.

020 7223 3837
108 Streatham High Road, London, SW16 1BW
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