London Residential Property Rental Market Watch – August 2018

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London Residential Property Rental Market Watch – July 2018

Introduction

Welcome to the August 2018 volume of London Rent Watch; our data tracker of the residential lettings market in London, with a detailed view of the private rental sector in our six core market areas in South and West London – Chelsea, Hammersmith, Fulham, Clapham, Balham and Putney.

The objective is to keep landlords with assets in these boroughs informed of the local and regional trends in the value of return on their buy-to-let investment. At the end of each calendar month we publish live, up-to-date data on mean and median average rental values, broken down by property type and size.

Summary

The monthly variance in residential rental values from July to August 2018 comes against a backdrop of falling supply across the London region. Our sample of 68,770 properties was -11.5% lower than in the month of July.

This fall in supply has increased the mean average letting value in the capital month-on-month by +3.7%, whilst the median value remains unchanged, suggesting that monthly growth has been fuelled more by the premium end of the market compared with low and mid-market properties.

Contents

(click to jump)

London Rental Values >
Chelsea Residential Rental Values >
Hammersmith Residential Rental Values >
Fulham Residential Rental Values >
Clapham Residential Rental Values >
Balham Residential Rental Values >
Putney Residential Rental Values >
About the Data & Methodology >

 

London Rental Values

12 Month Variance

Rental values across London cooled once again in the last 12 months, with the ONS reporting an annual decrease of -0.3%, down further from -0.2% in the preceding two months. This is the largest annual contraction in values since September 2010, when the figure was -0.4%.

With letting values in Britain as a whole rising 0.9% in the same period, and the UK excluding the capital up 1.5%, London is once again the only region where annual rental values are falling.

One Month Variance

London as a whole saw the mean asking rent increase from July to August, whilst the median remained unchanged, showing that growth in letting values has been greater for houses and apartments at the upper end of the market. For these properties, monthly growth was stronger relative to the number of bedrooms.

Single room lets were the exception to this, with rental growth most prominent in rooms with below average asking rents.

Headline Rent Values in London – August 2018

SAMPLE SIZE: 68,770 properties (-11.5% monthly)

LONDON August 2018 July 2018 Monthly Change
Mean Average Rental Value £3,023 pcm £2,914 pcm +3.7%
Median Average Rental Value £1,950 pcm £1,950 pcm 0%

 

Rent Values by Bedrooms in London – August 2018

LONDON % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 34% £1,936 pcm +2.2% £1,582 pcm +1.4%
Two bedrooms 51% £2,742 pcm +3% £2,102 pcm +4.3%
Three bedrooms 2% £4,333 pcm +4.4% £2,752 pcm +5.8%
Four bedrooms 9% £5,158 pcm +4.7% £3,033 pcm +1.1%
Five bedrooms 4% £7,923 pcm 4.8% £4,498 pcm +4.3%

 

Rent Values by Property Type in London – July 2018

LONDON % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 5% £745 pcm -1% £698 pcm +1.9%
Flat 81% £2,871 pcm +3.8% £1,950 pcm 0%
House 14% £4,728 pcm +1.9% £2,600 pcm -1.9%

 

 

Chelsea Residential Rental Values

SAMPLE SIZE: 4825 properties (-6.4% monthly)

One Month Variance

In Chelsea all property types and sizes signalled rental value growth from July to August. With a drop in supply of around -6.4%, all mean and median letting values increased showing that Chelsea’s growth is applicable to the low, mid and premium ends of the market concurrently.

One and three bedroom properties saw the largest increase in average asking rents, with single rooms outperforming entire flats and houses. Growth in four and five bedroom property rents was fuelled by those with above average letting values.

Headline Rent Values in Chelsea – August 2018

CHELSEA August 2018 July 2018 Monthly Change
Mean Average Rental Value £6,119 pcm £5,811 pcm +5.3%
Median Average Rental Value £3,423 pcm £3,358 pcm +1.9%

 

Rent Values by Bedrooms in Chelsea  – August 2018

CHELSEA % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 27% £3,001 pcm +3.1% £2,351 pcm +3.3%
Two bedrooms 47% £4,379 pcm +1.2% £3,445 pcm +0.6
Three bedrooms 18% £9,096 pcm +5.2% £6,717 pcm +3.3%
Four bedrooms 5% £14,034 pcm +0.05% £10,888 pcm +9%
Five bedrooms 3% £27,021 pcm +0.9% £20,583 pcm +5.5%

 

Rent Values by Property Type in Chelsea  – August 2018

CHELSEA % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 1% £991 pcm +13.5% £915 pcm +8.9%
Flat 88% £5,037 pcm +4.7% £3,315 pcm +2%
House 11% £15,074 pcm +1.3% £9,984 pcm +2.4%

 

 

Hammersmith Residential Rental Values

SAMPLE SIZE: 2472 properties (-18.4% monthly)

One Month Variance

Growth in Hammersmith rental values was modest yet consistent from July to August, with growth across all property types at all ends of the market.

Four and particularly five bedroom properties experienced the greatest increase in asking rents, whilst studio and single bedroom properties saw the greatest rises among those with below average rental values.

Headline Rent Values in Hammersmith – August 2018

HAMMERSMITH August 2018 Monthly Change
Mean Average Rental Value £3,117 pcm +0.3%
Median Average Rental Value £2,600 pcm +0.9%

 

Rent Values by Bedrooms in Hammersmith – August 2018

HAMMERSMITH % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 26% £2,019 pcm +1.6% £1,950 pcm +11.1%
Two bedrooms 45% £3,113 pcm +1.9% £3,033 pcm +1.1%
Three bedrooms 21% £4,286 pcm +2.1% £3,913 pcm +2.6%
Four bedrooms 5% £4,598 pcm +7.8% £3,792 pcm +8.4%
Five bedrooms 4% £9,629 pcm +12.4% £7,150 pcm +13.8%

 

Rent Values by Property Type in Hammersmith – July 2018

HAMMERSMITH % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £860 pcm +1.2% £835 pcm +4%
Flat 90% £2,888 pcm +0.9% £2,513 pcm +0.8%
House 7% £6,762 pcm +8% £4,312 pcm 0%

 

Fulham Residential Rental Values

SAMPLE SIZE: 2678 properties (-11% monthly)

One Month Variance

Overall letting values in Fulham remained flat from July to August 2018. Three and four bedroom properties saw strong growth in asking rents, whilst five bedroom properties contracted slightly.

Single room rentals increased across the board with a disproportionate supply at the bottom end of the market. Average rental values for houses meanwhile decreased, with the premium end of the market’s growth cancelled out by decreases in the low and mid-market segments.

Headline Rent Values in Fulham – August 2018

FULHAM August 2018 Monthly Change
Mean Average Rental Value £3,094 pcm +0.1%
Median Average Rental Value £2,383 pcm 0%

 

Rent Values by Bedrooms in Fulham – August 2018

FULHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 25% £1,980 pcm +0.6% £1,755 pcm -2.4%
Two bedrooms 45% £2,792 pcm +2% £2,500 pcm +3%
Three bedrooms 19% £4,096 pcm +7.4% £3,575 pcm +10%
Four bedrooms 7% £5,860 pcm +7.9% £4,117 pcm +2.7%
Five bedrooms 3% £8,149 pcm -3.5% £5,417 pcm 0%

 

Rent Values by Property Type in Fulham – August 2018

FULHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £923 pcm +9% £885 pcm +7.5%
Flat 85% £2,664 pcm +1.1% £2,275 pcm +3.4%
House 12% £6,540 pcm -2.2% £4,983 pcm +4.5%

 

Clapham (Lambeth) Residential Rental Values

SAMPLE SIZE: 865 properties (-17.9% monthly)

One Month Variance

Growth in Clapham’s rental values was seen in two, three and four bedroom properties, particularly in the low and mid-market segments. Five bedroom asking rents decreased during the month.

Increased rents for single room lets was fuelled almost entirely by growth at the premium end of the market, among those above the average value. Flats and apartments saw greater increases in the lower and mid-market segments.

Headline Rent Values in Clapham – August 2018

CLAPHAM August 2018 Monthly Change
Mean Average Rental Value £2,183 pcm +1.6%
Median Average Rental Value £1,820 pcm -1.5%

 

Rent Values by Bedrooms in Clapham – August 2018

CLAPHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 22% £1,568 pcm -0.1% £1,499 pcm +0.3%
Two bedrooms 47% £1,972 pcm +1.8% £1,798 pcm 0%
Three bedrooms 17% £2,497 pcm +4% £2,392 pcm +2.2%
Four bedrooms 9% £3,587 pcm +8.6% £3,351 pcm +5.9%
Five bedrooms 5% £4,713 pcm -0.5% £4,117 pcm -13.6%

 

Rent Values by Property Type in Clapham – August 2018

CLAPHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £708 pcm +0.8% £693 pcm -8.2%
Flat 81% £1,964 pcm +0.1% £1,777 pcm +1.2%
House 16% £3,670 pcm +1.3% £3,484 pcm +1.1%

 

Balham (Wandsworth) Residential Rental Values

SAMPLE SIZE: 661 properties (-12% monthly)

One Month Variance

Similarly to Clapham, the monthly growth in mean letting value in Balham was pushed by two, three and four bedroom properties. One bedroom and single room lets in fact saw noticeable decreases in the asking rent price; whilst five bedroom properties saw decreases at the premium end of the market only.

Growth was driven by houses, with flats and apartments’ values mostly unchanged, and those of single room lets significantly reduced on average.

Headline Rent Values in Balham – August 2018

BALHAM August 2018 Monthly Change
Mean Average Rental Value £2,228 pcm +1.2%
Median Average Rental Value £1,850 pcm 0%

 

Rent Values by Bedrooms in Balham – August 2018

BALHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 27% £1,399 pcm -2.6% £1,370 pcm -2%
Two bedrooms 37% £1,920 pcm +5.4% £1,820 pcm +5%
Three bedrooms 19% £2,708 pcm +8.4% £2,253 pcm -1.9%
Four bedrooms 11% £3,308 pcm +2.1% £3,066 pcm +0.4%
Five bedrooms 7% £4,466 pcm 0% £4,117 pcm -2.5%

 

Rent Values by Property Type in Balham – August 2018

BALHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £745 pcm -10.4% £701 pcm -2.6%
Flat 74% £1,812 pcm -0.1% £1,700 pcm 0%
House 23% £3,757 pcm +6.3% £3,501 pcm +2.9%

 

Putney (Wandsworth) Residential Rental Values

SAMPLE SIZE: 4027 properties

One Month Variance

Strong rental value growth for August in Putney came from flats, apartments and single room rentals. Houses, on the other hand, decreased in asking rental values during the period. One, two and three bedroom properties saw the greatest growth at the premium end of the market with median increases outstripping those of the mean average.

Headline Rent Values in Putney – August 2018

PUTNEY August 2018 Monthly Change
Mean Average Rental Value £3,022 pcm +2%
Median Average Rental Value £2,350 pcm +3.3%

 

Rent Values by Bedrooms in Putney – August 2018

PUTNEY % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 20% £1,804 pcm -0.6% £1,599 pcm +1%
Two bedrooms 46% £2,761 pcm +3.4% £2,383 pcm +7.8%
Three bedrooms 20% £3,838 pcm +7% £3,100 pcm +14.5%
Four bedrooms 9% £4,486 cm +8.9% £3,501 pcm +1.6%
Five bedrooms 5% £6,311 pcm +4.3% £5,001 pcm +0.4%

 

Rent Values by Property Type in Putney – August 2018

PUTNEY % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £812 pcm +3.1% £728 pcm +3.7%
Flat 81% £2,775 pcm +4.6% £2,167 pcm +1%
House 16% £4,748 pcm -1.8% £3,683 pcm -1.8%

 

About the Data & Methodology

Data Sourcing

The data in our Rent Watch tracker is a live to-the-minute snapshot of residential rental values, aggregated from the UK’s most comprehensive database of current asking rental values on home.co.uk. We collect the data for London as a whole, and for each of our six focus areas in South and West London – Chelsea, Hammersmith, Fulham, Clapham, Balham and Putney.

This month’s data was compiled at 30th August July 2018.

Methodology

The data is first broken down by property type and by the number of bedrooms, with each of these groups expressed as a percentage of the sample size for each location.

The mean average rental value is calculated by dividing the sum of all rental values in the sample y the number of properties in that sample.

The median average rental value is calculated by arranging every rental value in the sample from smallest to largest, and selecting the single value for which 50% of the values are above and 50% are below.

The monthly variance is expressed as a percentage increase or decrease from the data we collected in the previous month, to show a monthly change in rental values within the given sample.

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