London Population Growth And How This Favours Flat Sharing

Checkout the latest Blogs and News from the team at Like-Minded Living

It’s a documented fact the capital is set to see its population increasing faster than any other UK region. In fact, according to the Office for National Statistics, there will be a projected 9.54 million people residing in London by 2026 – representing a 9% increase from 2016. It’s also worth noting, the area of Tower Hamlets in East London is set to grow by around 18% in this time, making it the quickest-expanding local authority in England. A total of 330,000 individuals will be living there by 2021. To demonstrate this further, 13% of Britain’s total population lived in the capital just three years ago. And remember – London has 32 busy boroughs aside from the City, so the potential for flat-sharing is certainly on the up. Comparing Boroughs Looking more closely we can see the two biggest boroughs in London are currently Barnet and Croydon, both carrying populations of around 380,000 – the size of equivalent medium-sized cities. Looking to the West, the smallest borough is Kensington and Chelsea with a population of 160,000. This area has the slowest growth rate in London. With investment property in mind – Tower Hamlets is the current place to be. Why The Population Boom? The reason for the population increase certainly isn’t immigrants. It’s actually down to a straightforward increase in the birth rate. Fast forward 17 or 18 years and many of those children born at the time of writing this will be looking at university, a career or essential employment in and around London. Given the rapidly increasing population, it’s clear more forms of modern accommodation will be required. In short, flat-sharing will certainly be trending as never before. It also means there will be a call for an increase in highly professional landlords and property management services. Of course, with each passing year, we have youngsters coming of age and older people making changes to their lives in high numbers. It’s one reason why investing now in property suitable for flat-sharing is being deemed a very good move, especially with the future in mind. Good Lending Conditions The fact reasonably attractive rental yields have combined with what are good buy-to-let lending conditions, means buying property in London has become very appealing to investors. This at a time when there’s still a serious shortage of homes in and around the South East. The capital is very much different to the rest of the UK in terms of housing, simply because there’s a much greater proportion of young people to take into consideration. A Healthier Housing Market Many experts are predicting as population rates in London continue t0 grow, more prospective property owners won’t be able to afford a mortgage. This is where buy-to-let will come into its own, in order to also help those who can’t get a foothold on the property ladder. Flat-sharing in effect will be helping to sustain a much healthier housing market here in the UK. A Positive Approach By 2018 the number of buy-to-let investors had reached more than 2.5 million in the UK – up an amazing 5% in just a single year, and a record high. Taken on average landlords have 1.8 buy-to-let properties each. This average alone has increased for the fifth year in a row. As for Brexit, it seems a finalised deal whenever it comes will actually empower the draw of the capital as a must-go-to destination. This will also bring young overseas professionals and students into London. They too will need accommodation with flat-sharing becoming a favoured choice. We also need to be aware the numbers of flat sharers in London aged between 35 and 54 has risen dramatically in the past few years – more than 300% is a staggering figure. So, it’s not just young professionals’ landlords need to target. Older renters can also be quite discerning in outlook. And with this in mind, modern landlords need to provide top-quality service at all times. This is where a company such as Like-Minded Living can come into its own, providing superb year-round management support and quality assistance. Excellent Management Support With a thorough referencing process to hand they can help ensure applicants meet income affordability requirements, and the right to rent in the UK as standard. Well put together one to three-year management contracts, give property owners complete peace of mind. This also means rental income is guaranteed regardless of whether the property is empty or let. Why not check out the possibilities today? It’s important to make a note of the fact, rising earnings and growing earning potential generally leads to an increase in rental values. And despite Governmental changes in buy-to-let tax relief, a number of other tax relief scenarios are still available. While their remains a serious housing shortage, of course, the buy-to-let market will continue to boom. By employing the help of market management professionals, your chances of a consistently high yield income in London are considerably enhanced. Points To Consider On a closing note, it’s worth reminding ourselves London’s population is projected as increasing to more than 600,000 by 2021 – This will bring the total up to 9.3 million, with outer London contributing to 60% of the predicted figure. Doing the maths alone will demonstrate how flat-sharing will play a key role in the accommodation sector for quite some time to come. In effect, this is the perfect time to either become a landlord or to add further to a healthy portfolio.
There’s little doubt the most vital marker in terms of residential property investment is ‘Rental Yield’. This offers a measurement of the level of return on annual rental income, as a percentage of how much you paid for the property. Let’s say as an example you paid £165K for a property, securing a monthly rent of £825? In this case the gross yield achieved would stand at 6%. But remember – because of inflation the more you spend on purchasing a property, the lower your return will be. And the reason is simple. Rental value won’t keep pace with price inflation. Recent statistics show the UK as having an average rental yield of round about 3.6% – and with prices being higher in London, it’s obviously more difficult to attain higher than average yields in the capital, but it can be done with the right planning. Net Yield This encompasses maintenance and repair costs, accountancy fees, building insurance and other associated costs. If you’re about to become a new landlord you need to put agents and solicitors fees, stamp duty and furnishing costs into the mix for your first year of business. Capital Gains There’s something else however, you need to look at long term when trying to earn annual yields above the average. Achieving solid ‘Capital Gains’ on your property could help further down the line when you come to sell – but combined with a healthy average rental yield, it’s possible to get beyond the average level of profit. In short, annual rental yields are not the only factor involved in helping you profit from the investment. In London, property prices slowed for a while, but there are now signs this is reversing. If your property purchase is appropriate for your requirements, and in an area where house prices continue to increase, your chances of getting above that average rental yield are much greater. Making the right decisions at the start of your landlord adventure can certainly help you get above the average. Demand from Tenants Consistent and better yields really depend on demand, so this is where the best research and planning can help you find the perfect investment. Would you want to concentrate on the student population? Maybe a mixture of students and young professionals appeals to you? Or would you be happy catering for the family market? Whichever road you decide to go down it’s imperative you get the right property in the right place. This will guarantee the property is occupied long-term, providing the best possible income. Given all of this there’s a clear picture developing. The better your initial due diligence, the better your chances of success going forward. There’s plenty of demand in London, so finding those areas where demand is at it’s highest will help attract higher than average yields. It’s likely students and professionals will want to be in or around city and town centres, while families will be attracted to properties further outside. Important Note Savvy Landlords will ensure they stay ahead of the property curve when it comes to pricing, so they can react speedily to a competitive market. Modern landlords are setting the bar consistently higher, in order to reach maintain a high rental yield. A Trending High Rental Yield Area With an average rental of around £400 monthly, Stratford in London’s now fashionable East End can attract yields of more than 4.4%. In fact, lots of first time landlords are being attracted to the area because of lower than average property prices, high demand and large scale regeneration. This is certainly proof, being in a rental hotpsot is good news for better annual yields. The average rental yield figure in London is around 4% – but remember, this is an average figure. property in the E15 postcode or Newham, will typically carry a 4.5% rental yield – that’s above the capital’s average with an average monthly rental of £1421 set against average purchase prices of around £354K. Numbers Of Renters Growing In London What shouldn’t be forgotten is, as renters across the UK including London have grown in size, so too has the total number of private landlords. In fact, there are more than five million privately-let properties in Britain today. It’s actually a good thing competition has added spice to the market with landlords in mind, as impressively maintained, fully insured and first class properties can result in higher than average yields in many cases. Buying Through A Company If you have a portfolio with more than one property it’s possible to get a good yield when buying through a company with an excellent reputation in the market. A staggering 64% of landlords with four or more properties who added to their investments in 2019, will have purchased another from a company as opposed to individually. This is without question the current trend. Why? Because any landlord who purchases as an individual, will be subject to tax charged at income rates. When they buy through a company they can benefit from preferential rates of tax. Utilising Property Management Utilising the services of Like-Minded Living should you wish to let your home, means you can not only envoy some superb property management services, but also have peace of mind when it comes to 24/7 property maintenance, property inspections and rent collection. And actually, those landlords working with them have enjoyed increases in their annual rent without experiencing any vacancies. Summing Up Recent regulation changes by the Government includes a reduction in tax relief on finance costs for Buy-to-Let landlords. All the changes have encouraged property investors of all shapes and sizes in the area of buy-to-let to re-evaluate their portfolio. Focussing on rental yields alone may not result in greater long-term profits, though of course this largely depends on the locality the property is in. The bottom line seems to be, making better than average profit is really about a combination of rental yield, capital gains and buying a property in a rental hotspot. As we’ve touched on, the good news is there are plenty of those in the capital. If you’re interested in how we could help, we’d love to talk – Book a call here
It’s a fact people in the UK are taking to the benefits of house-sharing more than ever before. A fluctuating property market, problems getting onto the housing ladder, professionals working in a town or city close to their work, divorce, working away from home, the need to downsize and change lifestyle and even a cheaper retirement are a just a few of the numerous reasons. And with this, gone are the days when sharing meant penniless students, unscrupulous landlords, sub standard living conditions and un-paid bills. Now, house-sharing is a trending, simple and low cost alternative to a mortgage or much higher rents, with individuals living in comfortable surroundings with first class modern day amenities close by in many cases. Why is it low cost? Well here are a few pointers:
  • By 2025, it’s estimated the average UK home will be valued at £419,000.
  • Sharing can cut household bills dramatically.
  • A recent survey of Spareroom users revealed 58% said, while the financial benefit is the most important factor, they choose to live in a flat-share for both financial and social reasons.
  • Specialist websites now bring people together making the process of renting, letting out and sharing much easier than before.
  • Sharers have an average budget of £531 pcm to spend on rent – single occupants spend £548 pcm on average.
house-sharing So What Are The Benefits? Sharing is generally cheaper than renting a property, and remember, if you live in a house with just one bedroom you still need a bathroom, kitchen and living room. The good thing is by effectively sharing and splitting the cost of these extra rooms, it’s possible to reside in both a better property and area than you could afford otherwise. Younger people often find it better to reside with peers so they can share household duties and responsibilities. People from their thirties to their fifties in particular are finding property sharing to be an all-round positive experience – and many of those are males. Why should I invest in house-sharing properties? From the modern landlord’s prospective this is rapidly becoming a lucrative market when done correctly. Given the millions of people now following the trend, it’s been necessary to both build and convert properties. Because of this changing market, many developers now build and convert existing buildings, with the aim of creating flats or houses to be shared. In fact, there’s been a sharp all round rise in the number of landlords who buy properties to let out to multiple tenants. And the reason is clear – it’s much more lucrative for them to do so. Some of the most profitable projects have involved changing old industrial or institutional properties into shared flats. This both keeps the character of the building intact and uses it to meet the requirements of today’s renters. And the bottom line is it can be much more profitable for the landlord long term, with more contributors paying rent than just a single client. Up To Date Statistics According to the latest social housing survey commissioned by the Department for Communities and Local Government, the majority of the UK’s private rented housing stock is owned by landlords with just a single property – small-scale landlords. Despite significant institutional investment in the sector encouraged by government policy and tax breaks, more than 93% of landlords in the UK have a single rental property, accounting for 81% of privately rented stock. You’ll find little variation throughout England, Scotland and Wales, with single property landlords accounting for between 78% and 83% of all private rented properties. Population Growth And here’s something to consider? If the population continues to grow at the current rate of more than 500,000 a year, by 2039 there will be just under 10 million (9.7m) more people living in the UK. Enough to populate Greater Manchester three times over.” The need for flat-sharing will certainly increase along with this. Modern House Sharing Modern house-sharing doesn’t have to be an isolating or lonely experience when utilising the services of ‘Like-Minded Living’ for example. As a cutting edge rental agency they carry much more of a personal approach than an estate agent. They go the extra mile to match like-minded professionals with comfortable flat share properties or rooms to rent in London. Tenants can also have their utility bills organised for them, get help with additional furnishings and mediation in household affairs where necessary. It’s a brilliant package. Happy Landlords And when it comes to visionary landlords, they offer a range of property management services such as 24/7 property maintenance, property inspections and rent collection. Like Minded Living can make the process of letting your property simple, transparent and affordable. And of course, they’ll find you the perfect tenants, so in effect everybody wins. A straightforward yet brilliant 21st century concept. And remember – you can expect guaranteed rental income every month. You still get paid even if the property is empty. No set up fees, monthly commissions or hidden extras. What more could you want from such a service in todyay’s fast moving world? As you can see there are more benefits to flat and property sharing than would initially meet the eye. It’s a trending take on modern living especially in the capital where prices can be so high. Professionals of all ages are enjoying the concept, along with individuals from many other walks of life. A Positive Conclusion So whether you are a potential tenant with good references, a first time, corporate or buy-to-let landlord, flat and property sharing can certainly work for you with the help and guidance of a rental agency you can trust and building up a great long term relationship along the way. ‘Like-Minded Living’. Why not give us a call to find out more? Everyone should be able to enjoy where they live, and feel good about the people they live with. House-sharing is not just the here and now, but the future.

Rent Watch

Introduction

Welcome to the September 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 and tenants in these boroughs informed of the ongoing changes in private rental sector. At the end of each calendar month we publish live, up-to-date data on average rental values, broken down by property type and size.

Summary

The monthly variance in residential rental values from September to September 2018 comes against a backdrop of falling supply across the London region. Our sample of 59,549 properties was -13.4% lower than in the month of August. This fall in supply has increased the mean average letting value in the capital month-on-month by +4.3%, whilst the median value increased 2.2%, 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%, unchanged from the previous month. 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 average asking rent increase from August to September, against a backdrop of falling supply. This was most prominent in the mean average, so growth in letting values has been greater for houses and apartments at the upper end of the market. Whilst one bedroom properties contracted slightly, monthly growth was stronger relative to the number of bedrooms beyond this.

Headline Rent Values in London – September 2018

SAMPLE SIZE: 59,549 properties (-13.4% monthly)
LONDON August 2018 September 2018 Monthly Change
Mean Average Rental Value £3,023 pcm £3,153 pcm +4.3%
Median Average Rental Value £1,950 pcm £1,993 pcm +2.2%
 

Rent Values by Bedrooms in London – September 2018

LONDON % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 27% £1,922 pcm -0.7% £1,550 pcm -2.0%
Two bedrooms 42% £2,777 pcm +1.2% £2,102 pcm 0%
Three bedrooms 20% £4,478 pcm +3.3% £2,825 pcm +2.6%
Four bedrooms 8% £5,281 pcm +2.4% £3,098 pcm +2.1%
Five bedrooms 3% £8,562 pcm +8% £5,070 pcm +12.7%
 

Rent Values by Property Type in London – September 2018

LONDON % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 6% £750 pcm +0.6% £693 pcm -0.7%
Flat 92% £2,984 pcm +3.9% £1,993 pcm +2.2%
House 2% £4,922 pcm +4.1% £2,600 pcm 0%
   

Chelsea Residential Rental Values

SAMPLE SIZE: 4341 properties (-10% monthly)

One Month Variance

In Chelsea, a 10% fall in supply fuelled strong growth in asking rents, driven largely by one bedroom flats and single room lets, which together represented one quarter of the market. Larger properties posted slight falls in rental value over the month, particularly with four or more bedrooms, representing a cooling period following strong growth during August. Overall, rental growth in Chelsea was seen in all market segments, with slightly higher growth rates nearer the premium end of the market.

Headline Rent Values in Chelsea – September 2018

CHELSEA August 2018 September 2018 Monthly Change
Mean Average Rental Value £6,119 pcm £6,463 pcm +5.6%
Median Average Rental Value £3,423 pcm £3,575 pcm +4.4%
 

Rent Values by Bedrooms in Chelsea  – September 2018

CHELSEA % of sample Mean  Average rent Monthly Change
One bedroom 24% £3,101 pcm +3.3%
Two bedrooms 47% £4,364 pcm -0.3%
Three bedrooms 21% £9,089 pcm -0.07%
Four bedrooms 5% £13,838 pcm -1.4%
Five bedrooms 3% £26,618 pcm -1.5%
 

Rent Values by Property Type in Chelsea  – September 2018

CHELSEA % of sample Mean  Average rent Monthly Change
Room 1% £1,036 pcm +4.5%
Flat 88% £5,317 pcm +5.5%
House 11% £15,513 pcm +2.9%
   

Hammersmith Residential Rental Values

SAMPLE SIZE: 2156 properties (-12.8% monthly)

One Month Variance

Following modest growth in August, Hammersmith rental values took a significant jump during August, posting double-digit mean average growth. Whilst growth was recorded across all property sizes; three, four and particularly five bedroom homes were the driving force behind the performance in this borough. Accordingly, single room let values contracted slightly, whilst flats and houses both showed robust growth in values during the month.

Headline Rent Values in Hammersmith – September 2018

HAMMERSMITH August 2018 September 2018 Monthly Change
Mean Average Rental Value £3,117 pcm £3,467 pcm +11.2%
Median Average Rental Value £2,600 pcm £2,773 pcm +6.7%
 

Rent Values by Bedrooms in Hammersmith – September 2018

HAMMERSMITH % of sample Mean  Average rent Monthly Change
One bedroom 25% £2,038 pcm +0.9%
Two bedrooms 46% £3,120 pcm +0.2%
Three bedrooms 21%   £4,591 pcm +7.1%
Four bedrooms 3% £5,090 pcm +10.7%
Five bedrooms 4% £12,790 pcm +32.8%
 

Rent Values by Property Type in Hammersmith – September 2018

HAMMERSMITH % of sample Mean  Average rent Monthly Change
Room 3% £850 pcm -1.2%
Flat 90% £3,203 pcm +10.9%
House 7% £7,368 pcm +9%
 

Fulham Residential Rental Values

SAMPLE SIZE: 2175 properties (-18.7% monthly)

One Month Variance

Having remained flat during August, rental values in Fulham increased at a steady rate during September. This was more prominent in the low and mid-market segments, due in part to a fall in supply of almost one fifth. All property types and sizes recorded growth with no single standout area, with the exception of single rooms which fell in value during the period.

Headline Rent Values in Fulham – September 2018

FULHAM August 2018 September 2018 Monthly Change
Mean Average Rental Value £3,094 pcm £3,210 pcm +3.7%
Median Average Rental Value £2,383 pcm £2,492 pcm +4.6%
 

Rent Values by Bedrooms in Fulham – September 2018

FULHAM % of sample Mean  Average rent Monthly Change
One bedroom 24% £2,016 pcm +1.8%
Two bedrooms 45% £2,867 pcm +2.7%
Three bedrooms 20% £4,263 pcm +4.1%
Four bedrooms 7% £5,883 pcm +0.4%
Five bedrooms 4% £8,373 pcm +2.7%
 

Rent Values by Property Type in Fulham – September 2018

FULHAM % of sample Mean  Average rent Monthly Change
Room 3% £886 pcm -4%
Flat 84% £2,752 pcm +3.3%
House 13% £6,707 pcm +2.6%
 

Clapham (Lambeth) Residential Rental Values

SAMPLE SIZE: 760 properties (-12.1% monthly)

One Month Variance

Clapham’s rental values fell from August to September, due mostly to decreases in asking rents for one and three bedroom flats, which together accounted for around 40% of the market. All other property types and sizes posted growth, especially in single room lets, but neither this nor the relatively small drop in supply were able to offset the downward pressure from small flats.

Headline Rent Values in Clapham – September 2018

CLAPHAM August 2018 September 2018 Monthly Change
Mean Average Rental Value £2,183 pcm £2,112 pcm -3.2%
Median Average Rental Value £1,820 pcm £1,798 pcm -1.2%
 

Rent Values by Bedrooms in Clapham – September 2018

CLAPHAM % of sample Mean  Average rent Monthly Change
One bedroom 24% £1,513 pcm -3.5%
Two bedrooms 47% £1,975 pcm +0.2%
Three bedrooms 16% £2,480 pcm -0.7%
Four bedrooms 9% £3,657 pcm +1.9%
Five bedrooms 3% £4,727 pcm +0.3%
 

Rent Values by Property Type in Clapham – September 2018

CLAPHAM % of sample Mean  Average rent Monthly Change
Room 4% £743 pcm +4.9%
Flat 82% £1,937 pcm -1.4%
House 14% £3,719 pcm +1.3%
 

Balham (Wandsworth) Residential Rental Values

SAMPLE SIZE: 580 properties (-12.3% monthly)

One Month Variance

Rental values in Balham for September 2018 were mixed, resulting in a mostly unchanged environment overall. Single room lets decreased in price significantly, whilst three bedroom properties posted the strongest growth in asking rent. Coupled with the relatively low fall in supply compared with other boroughs, Balham’s rental market was seen as stable and unchanged during the month.

Headline Rent Values in Balham – September 2018

BALHAM August 2018 September 2018 Monthly Change
Mean Average Rental Value £2,228 pcm £2,233 pcm +0.2%
Median Average Rental Value £1,850 pcm £1,842 pcm -0.4%
 

Rent Values by Bedrooms in Balham – September 2018

BALHAM % of sample Mean  Average rent Monthly Change
One bedroom 26% £1,411 pcm +0.9%
Two bedrooms 39% £1,896 pcm -1.2%
Three bedrooms 16% £2,848 pcm +5.2%
Four bedrooms 11% £3,339 pcm +0.9%
Five bedrooms 7% £4,337 pcm -2.9%
 

Rent Values by Property Type in Balham – September 2018

BALHAM % of sample Mean  Average rent Monthly Change
Room 3% £691 pcm -7.2%
Flat 73% £1,795 pcm -0.9%
House 24% £3,754 pcm -0.1%
 

Putney (Wandsworth) Residential Rental Values

SAMPLE SIZE: 3018 properties (-25% monthly)

One Month Variance

The significance of a 25% drop in supply in Putney’s rental market during September yielded robust growth in rental values. Two and three bedroom flats and houses, accounting for 65% of the market, posted stable and sustained growth rates. Meanwhile five bedroom properties, making up just 5% of the market, posted an extraordinary 48% increase in asking rents. Elsewhere, single room lets were largely unchanged in value over the month.

Headline Rent Values in Putney – September 2018

PUTNEY August 2018 September 2018 Monthly Change
Mean Average Rental Value £3,022 pcm £3,151 pcm +4.3%
Median Average Rental Value £2,350 pcm £2,383 pcm +1.5%
 

Rent Values by Bedrooms in Putney – September 2018

PUTNEY % of sample Mean  Average rent Monthly Change
One bedroom 22% £1,799 pcm -0.3%
Two bedrooms 45% £2,857 pcm +3.5%
Three bedrooms 20% £3,893 pcm +1.4%
Four bedrooms 8% £4,433 pcm -1.2%
Five bedrooms 5% £9,332 pcm +48%
 

Rent Values by Property Type in Putney – September 2018

PUTNEY % of sample Mean  Average rent Monthly Change
Room 3% £812 pcm 0%
Flat 83% £2,925 pcm +5.4%
House 14% £4,896 pcm +3.1%
 

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 on 28th September 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.
Our Managing Director Denzel sat down with PropertyTribes to discuss life as a young entrepreneur in the property sector, lessons learned, and stepping up when things hit the proverbial fan. Watch the video below or read the full transcript.

Welcome back my name’s Chris Buckler and I am running Young Entrepreneurs Week on behalf of PropertyTribes by Keller Williams. I’m really fortunate to have Denzel with me here today – Denzel thanks for joining me.

Thank you very much Chris.

Can you give me an overview of your business?

Like-Minded Living aims to provide a place to live for young professionals that are moving to London. This includes finding the right place to live and also the right people, hence the name Like-Minded Living.

What got you into property? What attracts you to the sector?

I grew up in property – property is everywhere you go, it’s here there and everywhere, and I think I became infatuated with it after I left University. I saw that there’s an opportunity in the market and I pretty much took it with both hands.

You’ve grown your businesses to three members of staff now, so one of the themes we’ve touched on in the previous videos is taking on staff – can you talk me through the challenges of taking on staff and what you’ve learned?

Taking on staff sometimes means that they’re going to have to earn a wage whilst you don’t, but one of the most rewarding things is that they’re not only there to help your business, they’re also there to help you grow as well, so it’s a two-way process and now that the business has stabilised, it’s been a rewarding and challenging experience.

What do you think young people bring to the property sector?

I think what we bring is the attitude or fearlessness; we quite literally don’t take “no” as an answer and, if you do say no, that translates to “I’ll find another way of getting it done”. That sort of tenacity and never giving up is what young people bring to the market and it’s quite refreshing.

I think that’s an underlying theme of the videos we’ve recorded so far; if young entrepreneurs getting there just keep on going and keep pushing. What helped you the most over your journey of the past couple years?

It has a lot to do with having a good support system. This doesn’t necessarily mean you have a VC or private investor backing you; a good support system can be something as simple having good friends and family. When ‘stuff hits the fan’ these are the moments which are truly telling, because I believe how successful you become is about how well supported you are, and how much you can persevere through the difficult times by getting support from your family members.

Can you maybe deep dive into that? Tell me about a time where stuff hit the fan, didn’t go to plan, and you had to lean on someone.

For me growing up as a young boy, if you ever had a problem you would go to your parents and say “Mum, Dad, this is happening at school, this is happening University, what do I do, what’s the plan, what’s next?” When you’re in the industry the biggest difference that I found is that there isn’t a Mum and Dad card, quite literally if things are going in a certain direction your lawyer becomes your parent, he now has to sort that out for you, and nothing just goes away as if by magic. When I was in the moment finding out that some things weren’t as perfect as they seemed, my family were there for me not only from a business perspective, but also in a personal way. Everything to happen to us in business also provides lessons that can be applied on a personal level, so I think in that situation that’s why my family came in to help me.

I presume you work quite a large number of hours – how do you make sure you keep in contact with friends and family to keep that support network alive?

For the first two years you just have to accept that friends and family are not really going to be a big part of your life, and the sooner you accept that the easier it becomes for everyone, because a lot of times I say to my friends “look, for the next three or four weeks it’s peak accommodation season, I need to get my head down and focus”. So it’s now more of a cyclical thing – when business is not so busy then I’ll catch up with my friends, but when it’s peak season we have to have to get to work and get busy.

As a young entrepreneur, then, if you want to make it you’ve got to make sacrifices?

Sacrifices are just the minimum thing you have to accept. You have to make multiple sacrifices but then, when you get the reward, it’s fantastic.

Talk to me a little bit about the reward, and the feeling of when a deal comes in, or when you hit a certain milestone as a young person what does that mean to you?

It’s quite surreal because, if I go back to my office and I see other offices next to us, it’s an older age group and then you have to look yourself in the mirror and say “is this really what’s happening? I thought about this in my bedroom and here I am today in our office”. So as a young person, every day you almost have to pinch yourself and realise yes, this is happening and yes, you do have to step up to the plate and yes, you do have to mature. It’s a humbling experience.

How long did it take you to move from the bedroom to an office?

We were a slow burner. We did rent to rent to begin with, meaning high capital expenditure, and we found that your growth rate is limited to how much capital you have available. Now that we’ve switched to an estate agency-based business, we moved into an office in Shoreditch at the end of 2017, and then moved to Putney, so it took us about a year and a half to two years. As I say, even if it seems slow for anyone else, that’s just where your company is at the time and you have to just accept that, move on, and make steps to get to where you want to be. Everybody has their time.

What advice would you give to any entrepreneurs watching this, in terms of you’ve got no mum and dad telling you what to do, but you have to develop as an individual? So if you get onto the corporate ladder you might do some accounting, or be a lawyer, so you’ve got that path mapped out for you. But as an entrepreneur you don’t, so how do you how do you evolve as an individual?

My first core mantra for evolution is acceptance. The minute that you can start to accept your situation, whether it’s a family at home or a business or grades, is the minute that you can actually start to grow personally. When you can accept and understand “this is where I am right now, and this is where I want to be,” every day has its pros and cons – accepting the cons provides ways in which to learn, and the pros are the rewards of the challenges. Once you have that sort of mindset it allows you to go through the rollercoaster of entrepreneurship in a healthier state of mind.

You seem like a guy that’s quite into mindfulness and evolving; if you could give a tip for any young entrepreneurs, whether it’s daily habits, recording gratitude, something along those lines, what would that be?

Find something that will humble you. Find something that reminds you exactly who you are and where you came from. Something that we like to do is get involved with food banks, working with them on organising meals and that sort of thing. When you experience all sorts of events truly you understand that the work that you’re doing is great, but this is where I really should be trying to make a difference and trying to help, and it does help to humble you then you can go into your next challenge without overly high expectations because you know exactly where you came from.

Thanks so much for joining us.

 

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.

London Residential Property Rental Market Watch – July 2018

Introduction

Welcome to the first 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’ll publish live, up-to-date data on mean and median average rental values, broken down by property type and size.

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 the capital cooled in the 12 months to June 2018, with the ONS reporting an annual decrease of 0.2% for the second month in a row. When the drop was recorded in May this was the first month since September 2010 that London’s letting values contracted. With letting values in Britain as a whole rising 1% in the same period, and the UK excluding the capital up 1.6%, London is the only region in the country where annual rental values are falling.

Headline Rent Values in London – July 2018

SAMPLE SIZE: 77,703 properties
LONDON July 2018 Monthly Change
Mean Average Rental Value £2,914 pcm N/A
Median Average Rental Value £1,950 pcm N/A
 

Rent Values by Bedrooms in London – July 2018

LONDON % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 28% £1,895 pcm N/A £1,560 pcm N/A
Two bedrooms 42% £2,661 pcm N/A £2,015 pcm N/A
Three bedrooms 18% £4,150 pcm N/A £2,600 pcm N/A
Four bedrooms 8% £4,926 pcm N/A £3,000 pcm N/A
Five bedrooms 3% £7,558 pcm N/A £4,312 pcm N/A
 

Rent Values by Property Type in London – July 2018

LONDON % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 5% £753 pcm N/A £685 pcm N/A
Flat 82% £2,765 pcm N/A £1,950 pcm N/A
House 13% £4,642 pcm N/A £2,650 pcm N/A
   

Chelsea Residential Rental Values

SAMPLE SIZE: 5155 properties

Headline Rent Values in Chelsea – July 2018

CHELSEA July 2018 Monthly Change
Mean Average Rental Value £5,811 pcm N/A
Median Average Rental Value £3,358 pcm N/A
 

Rent Values by Bedrooms in Chelsea  – July 2018

CHELSEA % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 28% £2,911 pcm N/A £2,275 pcm N/A
Two bedrooms 47% £4,326 pcm N/A £3,423 pcm N/A
Three bedrooms 17% £8,650 pcm N/A £6,500 pcm N/A
Four bedrooms 5% £14,026 pcm N/A £9,984 pcm N/A
Five bedrooms 2% £26,783 pcm N/A £19,500 pcm N/A
 

Rent Values by Property Type in Chelsea  – July 2018

CHELSEA % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 1% £873 pcm N/A £840 pcm N/A
Flat 89% £4,812 pcm N/A £3,250 pcm N/A
House 10% £14,887 pcm N/A £9,750 pcm N/A
   

Hammersmith Residential Rental Values

SAMPLE SIZE: 3030 properties

Headline Rent Values in Hammersmith – July 2018

HAMMERSMITH July 2018 Monthly Change
Mean Average Rental Value £3,127 pcm N/A
Median Average Rental Value £2,578 pcm N/A
 

Rent Values by Bedrooms in Hammersmith – July 2018

HAMMERSMITH % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 25% £1,987 pcm N/A £1,755 pcm N/A
Two bedrooms 45% £3,053 pcm N/A £3,000 pcm N/A
Three bedrooms 21% £4,197 pcm N/A £3,813 pcm N/A
Four bedrooms 6% £4,264 pcm N/A £3,499 pcm N/A
Five bedrooms 4% £8,567 pcm N/A £6,284 pcm N/A
 

Rent Values by Property Type in Hammersmith – July 2018

HAMMERSMITH % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 2% £850 pcm N/A £803 pcm N/A
Flat 89% £2,861 pcm N/A £2,492 pcm N/A
House 9% £6,262 pcm N/A £4,312 pcm N/A
 

Fulham Residential Rental Values

SAMPLE SIZE: 3009 properties

Headline Rent Values in Fulham – July 2018

FULHAM July 2018 Monthly Change
Mean Average Rental Value £3,090 pcm N/A
Median Average Rental Value £2,383 pcm N/A
 

Rent Values by Bedrooms in Fulham – July 2018

FULHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 26% £1,968 pcm N/A £1,798 pcm N/A
Two bedrooms 46% £2,736 pcm N/A £2,427 pcm N/A
Three bedrooms 19.5% £3,812 pcm N/A £3,250 pcm N/A
Four bedrooms 9% £5,430 pcm N/A £4,008 pcm N/A
Five bedrooms 0.5% £8,446 pcm N/A £5,417 pcm N/A
 

Rent Values by Property Type in Fulham – July 2018

FULHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £847 pcm N/A £823 pcm N/A
Flat 85% £2,635 pcm N/A £2,200 pcm N/A
House 12% £6,685 pcm N/A £4,767 pcm N/A
 

Clapham (Lambeth) Residential Rental Values

SAMPLE SIZE: 1054 properties

Headline Rent Values in Clapham – July 2018

CLAPHAM July 2018 Monthly Change
Mean Average Rental Value £2,149 pcm N/A
Median Average Rental Value £1,848 pcm N/A
 

Rent Values by Bedrooms in Clapham – July 2018

CLAPHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 23% £1,569 pcm N/A £1,495 pcm N/A
Two bedrooms 41% £1,937 pcm N/A £1,798 pcm N/A
Three bedrooms 22% £2,402 pcm N/A £2,340 pcm N/A
Four bedrooms 9% £3,303 pcm N/A £3,163 pcm N/A
Five bedrooms 5% £4,736 pcm N/A £4,767 pcm N/A
 

Rent Values by Property Type in Clapham – July 2018

CLAPHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £4,767 pcm N/A £755 pcm N/A
Flat 83% £1,945 pcm N/A £1,755 pcm N/A
House 14% £3,624 pcm N/A £3,445 pcm N/A
 

Balham (Wandsworth) Residential Rental Values

SAMPLE SIZE: 751 properties

Headline Rent Values in Balham – July 2018

BALHAM July 2018 Monthly Change
Mean Average Rental Value £2,201 pcm N/A
Median Average Rental Value £1,850 pcm N/A
 

Rent Values by Bedrooms in Balham – July 2018

BALHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 23% £1,436 pcm N/A £1,398 pcm N/A
Two bedrooms 36% £1,822 pcm N/A £1,733 pcm N/A
Three bedrooms 24% £2,498 pcm N/A £2,297 pcm N/A
Four bedrooms 11% £3,239 pcm N/A £3,055 pcm N/A
Five bedrooms 6% £4,465 pcm N/A £4,225 pcm N/A
 

Rent Values by Property Type in Balham – July 2018

BALHAM % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 2% £832 pcm N/A £720 pcm N/A
Flat 75% £1,814 pcm N/A £1,700 pcm N/A
House 24% £3,533 pcm N/A £3,402 pcm N/A
 

Putney (Wandsworth) Residential Rental Values

SAMPLE SIZE: 4027 properties

Headline Rent Values in Putney – July 2018

PUTNEY July 2018 Monthly Change
Mean Average Rental Value £2,961 pcm N/A
Median Average Rental Value £2,275 pcm N/A
 

Rent Values by Bedrooms in Putney – July 2018

PUTNEY % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
One bedroom 20% £1,816 pcm N/A £1,582 pcm N/A
Two bedrooms 46% £2,671 pcm N/A £2,210 pcm N/A
Three bedrooms 18% £3,584 pcm N/A £2,708 pcm N/A
Four bedrooms 10% £4,119 pcm N/A £3,445 pcm N/A
Five bedrooms 5% £6,048 pcm N/A £4,983 pcm N/A
 

Rent Values by Property Type in Putney – July 2018

PUTNEY % of sample Mean  Average rent Monthly Change Median Average rent Monthly Change
Room 3% £787 pcm N/A £702 pcm N/A
Flat 81% £2,653 pcm N/A £2,145 pcm N/A
House 16% £4,835 pcm N/A £3,750 pcm N/A
 

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 15:00 on 23rd 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.

Increasing the Profitability of your Rental Property; Adding Value & Reducing Costs

Maximising financial return is a key target for any investment, property being no exception. With an economic backdrop of slowing London rent growth, many Landlords are seeking now more than ever to maximise rental income, to ensure the profitability of their property investments. Simply increasing the rent is not suitable for some landlords, especially in the present climate, in which this could in fact lead to a longer vacancy rate and lower returns over the year. Below we highlight the key tactics for buy-to-let investors to maintain their rental yield during a slow market, and increase it in a buoyant one.how to maximise rental income from your residential property

1. Minimise your Costs

Profitability is as much about cost reduction as it is about increasing income. It’s always worthwhile to start by taking control of the costs associated with your property investment, firstly by making a simple account of all relevant monthly outgoings, so that you know which of the following areas you should prioritise.

Find 0% Commission

Typically anywhere from ten to fifteen percent of your rental income, managing agent commission rates account for a significant monthly cost on your property’s balance sheet. Agents offering services without commission started with the likes of online estate agents, and were previously only available to sellers. With us, however, landlords can now receive a full managing agency service for their residential lettings at 0% monthly commission. This means that for every £1000 of rental income, that’s another £100-£150 every month back onto the bottom line. Find out more about 0% commission.

Limit your vacancy period/void period/Let your property quickly

Every day that your property is vacant between tenants represents missed revenue. Unless you have essential maintenance or upgrades planned, having an empty non-income-generating asset is a frustration for many landlords. After all, your monthly costs do not stop mounting up simply because you’re between tenants. Fortunately there are a number of tactics available to landlords for ensuring their investment works for them throughout the year:
  1. Guarantee your rent. We offer guaranteed rental income at the valuation we provide – no matter if your property is empty.
  2. Cap your vacancy period. We guarantee to let your property within 21 days of bringing it to the market. We’re so confident we’ll do so, that we’ll pay you £1000 if we don’t. No questions asked. Find out more.
  3. Target the right tenants. It’s hard to know how long a prospective tenant plans to stay in your property, but long-term lets are always preferable when seeking to minimise void periods. On the whole, we know that certain groups lay their roots for longer than others. This is why we only target professional tenants with our thorough referencing and background checks.
  4. Start planning early. Ask your tenants a couple of months in advance of their tenancy renewal if they have any plans to move on. Whilst some may not know for sure, this allows you to gauge the possibility of needing to find their replacement ahead of time. If they’re planning to leave, engage your letting agent as early as possible to minimise the vacancy.

Guarantee your Rent

No matter how hard you try to ensure your tenants are reliable and come with good references, anybody can find themselves caught short on the rent once in a while. Whilst this income usually comes through in the end, the lack of consistency and cash flow can be a frustration for many buy-to-let investors. That’s why we guarantee the rent at appraisal value for our landlord clients, every month without fail. This way we can guarantee your cash flow, and await the outstanding amount on our own terms.

Find the best deal

Insurance products and mortgages are unavoidable costs for all responsible landlords, but they are by no means fixed overheads. Financial products are by their very nature highly competitive, so more often than not you can find a better deal by shopping around. Comparison websites are a great place to start when looking for a better deal from your insurance or mortgage provider, but it’s worth remembering that they don’t all show the same offers, so using a few different sites is always worthwhile. It should also be noted that some insurance providers will offer their best rates when you go directly to them, but these are often positioned at the premium end of the market to begin with.

Stay above board

Industries are changing at an ever increasing rate, even the typically slow-to-innovate property sector. Technological advancements, as well as broad based societal changes, can often lead to changes in legislation. As a professional property investor it’s  always recommended to keep abreast of the latest news and changes to whichever area of the industry you work in, avoiding any risks of fines from unintentional legal slip-ups.

2. Maximise rental income from your property

With your associated costs pared back successfully, we look towards the inherent value of your property itself on the rental market. The range of improvements you can make to your property, and the extra benefits you can offer with tenancy, are numerous. Selecting those which will improve your ROI most effectively is a matter of budget, time and target market. Large-scale investment into your property, such as extending the footprint, can be great where there is significant upside in the local rental market, and when your investment is intended as long-term. Those looking for a medium investment term, and for properties already at the premium end of the local market rate, should instead look towards smaller improvements or tenancy benefits. All the while, your ideal target tenants should be top of mind. If you’re looking to fill your property with students, high end fixtures may not be such a priority. Similarly if your letting is for retirement purposes, including that Netflix subscription with the rent might not be the finishing touch that will secure your tenant. Below we look at the quick wins and major projects you can undertake to maximise the rental value of your real estate.

Let Each Room Separately

An entire property’s rental value is rarely greater than the sum of its parts. The combined value of letting each room in a shared house separately almost always results in a higher total monthly income. Furthermore when letting individual rooms, in the event that one of your tenants leaves, you’ll not be left with a totally vacant property and will continue to receive rent from the remaining occupants. Filling this room with a new tenant is often quicker and easier than filling the entire property at once, too. Splitting your asset into individual income generating compartments now goes beyond just bedrooms, too. Those seeking to squeeze all of the extra value that their property has to offer can look towards the increasingly popular sharing economy, where letting out amenities such as garages, parking spaces, sheds and even loft storage space to the general public on a short-term basis is ever more common.

Review your Rent

As we’ve discussed, increasing the rent often isn’t the answer, particularly for those whose property is already let at the top end of the local market. If you’ve been fortunate enough to hold long term tenants in your property, however, any increases in price over the years will typically have been below the broader market rate in the same period. It’s worth considering a market appraisal of your property’s rental value to see if you’ve got scope to raise your rent; either in line with market rates for a vacant property, or at a higher yet still favourable rate for existing occupants. Get your free, no-obligation valuation.

Offer ‘Extras’

Rent isn’t the only overhead for your tenants to factor in to their monthly accommodation budget. Bills from gas and electricity, to internet, water, and home entertainment subscriptions all make up part of the sum that can be spent on living in a private rented home. By including some of these overheads within the price of renting your property, you’ll make potential tenants feel that they’re getting a good deal and, by accounting for some of their monthly overheads, you’re freeing up some of their income to go towards a slightly higher rental value. The extras you include with your tenancy will depend on the type of occupants you’re hoping to attract, be they professionals, families, students or retirees. Here are some common added benefits used to entice potential tenants:
  • Inclusive utility bills;
  • Broadband/fibre internet;
  • Entertainment subscriptions (Netflix, Sky, Spotify etc.);
  • Laundry or dry cleaning collection and delivery;
  • Food delivery subscriptions or online supermarket vouchers.
  • Furnishings;
  • ‘Pet friendly’ policies.

Clean & Tidy

It goes without saying that any property on the market should be thoroughly cleaned prior to any viewings or even photographers visiting. Think beyond the usual day-to-day cleaning tasks; it’s usually worth investing in a professional cleaning service who will undertake a ‘deep clean’ of your property, giving it a new lease of life to impress potential new tenants. This will go a long way to justifying the higher rental value of your property, and may even lead to tenants feel like they’re getting a good deal, a win-win all round.

Refresh

You may not have visited your property for some time, especially after a long tenancy or over a long physical distance. Take a look at the condition of the walls and floors, fixtures and fittings, any damp, mould or mildew, and consider giving some TLC to any areas which are looking tired. Much like a good spring clean, you’ll make a far better first impression both in listings photos and during physical viewings when your property looks its best. You’ll also want to ensure everything is functional and works as it is intended, run a quick audit of the following areas in advance of anybody viewing your property:
  • Heating;
  • Door/window handles & locks;
  • Light bulbs;
  • Kitchen & bathroom fixtures;
  • Appliances;
  • Any furniture;
  • Toilet flush;
Finally, inform your tenants of any maintenance arrangements you have in place – to whom they should report issues, and how access to tradespeople may be granted to the property. Ask us about all inclusive 24/7 maintenance callouts.

Larger Projects

Finally, if you’re intending to hold on to your investment for the long term, you may look to undertake some large improvement projects for a more significant boost to your property’s overall value as well as maximise rental income. Kitchens and bathrooms are a good place to start. Newly modernised fixtures and appliances are an important selling point for many tenants, and will usually facilitate a higher rate of rent, especially where your previous fittings old or tired. Always bear in mind, however, that there is an upper limit to the value which can be created from new kitchens and bathrooms. For lettings properties we typically find that mid-range is best for creating value, as the extra money spent on luxurious high end items almost never results in a better return than quality fittings on the middle shelf. The ultimate way of adding to the value of real estate is by adding physical space. Do you have room to add an extra bedroom, an en suite, roof terrace, garage or annex? Have others in the postcode area done the same? If so, there may be scope to make some further investment into your buy-to-let. Always keep abreast of ceiling prices in the local area and ensure that anything you spend will be less than the potential upside for your property’s value. If you make the most of letting your property on a room-by-room basis, or letting out amenities in the sharing economy as discussed above, then you’ll reap the greatest rewards from extending your property.   Need a managing agent with a like-minded approach to keeping landlords’ costs under control? Get in touch.
© Like-Minded Living 2018, all rights reserved
Terms & Conditions Cookie Policy Privacy Policy
RKK Creative Logo