Prime central London’s letting sector appears to be thriving despite the uncertainty leading up to, and since, the shock referendum result.
“Relocation searches increased by 50 per cent from May to June which shows there is strong faith in the London market from blue chip companies, and that initial scaremongering about a mass exodus in the market has not slowed down the summer flow of expats coming to the UK in time for the start of the school year in September” according to Lucy Morton, head of residential agency at JLL and WA Ellis.
But she warns that there are now more properties being put on the lettings market than would be usual at the height of summer.
“This rise in instructions is undoubtedly due to vendors now looking for an alternative solution [to selling] and wanting to take advantage of the strong lettings market. These clients are asking us to market for lettings either exclusively or alongside sales” she says.
She also says that to enable this flexibility, landlords of these properties are requesting break clauses “which are not popular with many tenants looking to find a long term home – this is particularly relevant for the corporate and relocation market.”
Morton warns that it is the landlords who want to let for the long term, particularly seasoned investors, who are going to succeed with the increased volume of relocating corporate tenants.
“They offer a three year commitment with little flexibility for a landlord to break the terms of the lease – not ideal for those wanting to return to the sales market should things change imminently” she adds.
“With built-in annual rent reviews and guidance from our local experts, we are seeing many great lettings deals being done across the business. Lonres supported this at the end of las! t week reporting that there were 1,027 new instructions and 562 price reductions – over 100 more price reductions than the week before – proving that clients in central London are more in tune with market conditions.”