In the first half of 2010 residential rents in the Midtown, City and Docklands sub-markets increased on average by 7% in response to an imbalance in supply and demand (Figure 3). At June 2010, the rent for typical one and two-bedroom flats in the Midtown, City and Docklands market increased by £25-30 per week to £365 pw for one-bedroom units and £480 pw for two-bedroom apartments.
There was also significant demand for larger and more expensive apartments and houses where rents can be as high as £2,500 pw. Central London continued to emerge from recessionary conditions with a positive effect on recruitment in the employment market. According to Morgan McKinley, City job opportunities increased by 100% between April 2009 and April 2010, but the company, which publishes a monthly monitor, did note that job opportunities fell in
April in response to the general uncertainly around the General Election. That ties in with our own data on the level of confidence in the housing market, where sentiment has been tempered since the General Election on 6th May.

In Midtown, City and Docklands, rental growth is normally associated with increased demand in the second half of the year. Significant rental growth in the first half of 2010 reflected both supply side and demand side factors. On the supply side, the level of development completions was reduced. At the same time, the proportion of new homes being sold to investors decreased due to the difficulties of raising Buy To Let (BTL) finance. Some accidental landlords put their properties up for sale in response to rising prices and this also reduced the size of the pool of clerkenwell rental property.

hurford salvi carr

hurford salvi carr

At the same time, “frustrated renters” were rebuffed in their attempts to become owner occupiers, due to high prices and the lack of competitive and reasonably priced mortgage products for first-time buyers. So the normal flow of renters to owner occupiers continued to be significantly stemmed. As a result, at renewal, we were able to negotiate increases in rents for our clients.