Claire Pin­cott of Sav­ills

Buckinghamshire Advertiser - - WWW.GETBUCKS.COM.UK -

THE prime rental mar­ket out­look will be un­der­pinned by a strength­en­ing econ­omy and de­mand from ex­pand­ing emerg­ing sec­tors such as tech­nol­ogy, ac­cord­ing to our lat­est re­search.

In the London com­muter belt, the strong­est an­nual growth was seen in the outer com­muter zone, with av­er­age rents ris­ing 2.5 per cent.

It also shows that since the 2008 peak of the prime rental mar­ket, three-bed­room prop­er­ties have seen the strong­est growth, with av­er­age rental val­ues ris­ing three per cent above their peak. How­ever, in the past three months alone, growth has been strong­est for one- and two-bed­room prop­er­ties.

It is sig­nif­i­cant that the high­est lev­els of growth are for one-, two- and three-bed­room prop­er­ties.This re­flects an in­crease in the num­ber of young shar­ers rent­ing be­cause they can­not af­ford to buy, and is in­dica­tive of the strength­en­ing eco­nomic re­cov­ery out­side London, as more pro­fes­sion­als re­lo­cate for work.

Our re­search depart­ment re­cently iden­ti­fied that 20 per cent of the London work­force now lives out­side the cap­i­tal and that one- and two-bed­room apart­ments are in high de­mand. At the up­per end of the mar­ket, we have seen a num­ber of prop­er­ties re­turn to the sales mar­ket since the be­gin­ning of the year.The in­flux of stock in the early spring meant the mar­ket turned very quickly to a buy­ers’ mar­ket, and the only suc­cess­ful sales were of prop­er­ties priced re­al­is­ti­cally, pre­sented well and in highly de­sir­able lo­ca­tions.This has led to a shift in sen­ti­ment, with many land­lords choos­ing to let their prop­er­ties out again in the short to medium term.

Lu­cian Cook, head of Sav­ills Res­i­den­tial Re­search, adds:“As de­mand for rental prop­er­ties con­tin­ues to grow, owing to af­ford­abil­ity con­straints, our fore­cast for rental growth over the next five years is strong. How­ever, in lo­ca­tions of high sup­ply, we ex­pect rents to come un­der pres­sure.

“In the com­muter zone, stock lev­els will be de­pen­dent on the sen­ti­ment of ac­ci­den­tal land­lords, who are in­creas­ingly look­ing to sell as the mar­ket strength­ens, although some may con­tinue let­ting, gas cap­i­tal val­ues in prime com­muter zone lo­ca­tions are fore­cast to over­take London in the next five years.”

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