London Borough of Camden experiences drop in rentals

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    London Borough of Camden experiences drop in rentals

    The following article demonstrates that Central London is experiencing a correction in rental prices, whilst only relating to Camden it supports feedback from agents operating in other areas of the London Boroughs.

    ”Benham and Reeves has revealed that Camden is the London borough to see the greatest decline in average rental prices, dropping by 9.2% since December 2019.

    Before COVID-19, the average monthly rental price of a property in Camden was £2,536, which has now fallen to £2,302. This has seen average yields drop by 0.4%.
    Since December 2019, the average rental price in London as a whole has dropped by 3.1%, from £1,697 per month to £1,644.
    cash purchases

    Spotahome: Rental prices up 7% across England
    As a result, the average landlord has also seen their rental yield decline by 0.2%.
    In contrast, the average rent in Lambeth jumped 8.8%, from £1,754 to £1,908 over the same timeframe. This equated to the average yield rising by 0.2%.
    Marc von Grundherr, director of Benham and Reeves, said: “It is an incredibly tough time for the London rental sector at present with the pandemic bringing a notable decline in the otherwise consistently high levels of rental demand seen in the capital.

    “As a result, many landlords are having to reduce their rental income expectations in an attempt to secure some form of income.
    “This comes on top of a string of government changes to the sector in recent years that had already dented the profitability of investing in London bricks and mortar. With London’s landlords already forced to operate with extremely fine margins, this latest decline could spur many to reevaluate their buy-to-let activity.
    “Yes, the declines in rent and yields may seem marginal, but they certainly aren’t in the context of a buy-to-let and it’s imperative that the government does more to help landlords and to support the backbone of the London rental sector.”

    #2
    It is only going to impact landlords, who charge market rents. Those landlord who have n't increased rents, won't have a problem.

    With all the bars and restaurants closed, people will be asking is it worth paying so much money for location location location.

    Comment


      #3
      The property market has always ( always! ) had ups and downs. End of.

      Landlords never worried when e.g. mortgage interest rates dropped or market rents went up.

      Surely nobody thought property rentals was a guaranteed route to riches come what may .. err.. oh dear, there were all those gurus and experts flogging their snake oil "education" schemes

      It's a long term game. Sit tight, batten down hatches and wait for rises...
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        All these figures reflect are changes at the margin ie the hundredor so properties recently let.As dodge says forget the gurus and sellers of dreams-roll up your sleeves and battle wth reality.

        Comment


          #5
          And how do they claim to know what my yield is. That return to me is a percentage of my investment and is quite confidential.
          so , it's cobblers.

          Comment


            #6
            Never use anywhere in London as a basis for assumptions elsewhere - monthly rental now only £2302 - my heart bleeds!

            Comment

            Latest Activity

            Collapse

            Working...
            X