Buy-to-let landlords in London have not resorted to panic-selling as a consequence of the Brexit vote and are sensibly opting not to try and increase rents in the face of growing housing supply in the rental market, particularly in prime central London, according to Benham & Reeves.
The letting agency, which has a number offices across the capital, reports that rents have ‘flat-lined’ in the city since the Brexit vote to leave the EU, and the company is strongly advising landlords to focus on keeping rents static to help ensure that tenants agree to renew their tenancy agreements.
“Rents have flat-lined across most of the capital. We are advising all our landlords not to ask for rental increases and if the tenant has been particular good then to even consider a slight decrease or some works to retain them and avert any void,” said Marc von Grundherr (right) at Benham & Reeves Residential Lettings.
Noticeably, rent prices in prime central London have fallen for the second month in a row, largely due to an oversupply in rental properties, particularly in swanky neighbourhoods like Belgravia, Chelsea and Knightsbridge, which von Grundherr insists offers some of the “best value properties in the capital at the moment”. This in spite of the fact that one-bedroom flats in these areas still cost as much as £2,700pcm according to existing listings on the Rightmove property portal.
The Benham & Reeves director also pointed out that “transformed pockets of North West London”, such as Colindale in NW9, continue to offer “excellent returns for investors” who enter the market early.
He continued: “If you look at most of the Heat Map, rents have stayed the same over the past quarter. We’re in a period of uncertainty and fortunately, our landlords are listening to our advice when we tell them not to be greedy and simply value the tenants they have.”