The central London sales market dip of recent weeks has directly led to a surge in the lettings sector according to Benham & Reeves Residential Lettings.
It says the change in stamp duty rates which adversely affect higher-value properties, continued restrictions on lending, and the strengthening value of the pound against other currencies have combined to reduce sales of properties across the capital.
“The widely anticipated post-election bounce simply has not happened, resulting in plateauing prices and a decrease in transaction numbers” says Marc von Grundherr, BRRL’s lettings director.
“While sales market suffers, though, the lettings market is experiencing a resurgence with rental values seeing a dramatic increase across almost all London postcodes” he says.
Rents have risen at least two to four per cent over the last quarter, he says, with greater rises in parts of prime central London and pockets elsewhere.
“South Kensington saw rents increase by over seven per cent on average with similar rises in parts of Chelsea. Huge increases were also seen in parts of east London with massive gains of over 11 per cent in both Bethnal Green and Bow. These gains were particularly impressive given that both areas saw increases of over four per cent last quarter” he says.
“The stamp duty changes have been a gift horse for many landlords who have seen rents stagnate over the last few quarters” he adds.