ST JOHN’S WOOD LETTINGS MARKET INSIGHT 2018 · 2018-04-24 · Regent's Park ST JOHN’S WOOD...
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Swiss Cottage Euston Maida Vale Lisson Grove Marylebone Baker Street Lord's Cricket Ground Little Venice Regent's Park ST JOHN’S WOOD LETTINGS MARKET INSIGHT 2018 FIGURE 1 Rental values in St John’s Wood Achieved weekly rental values, year to February 2018 Source: Knight Frank Research / LonRes l Up to £750 l £750 to £1,000 l £1,000 to £2,000 l £2,000 to £3,000 l £3,000+ Prime central London update Average rental values in prime central London fell 2.1% in the year to February. This compares to a decline of -5.1% recorded in February last year and underlines how rental values are bottoming out. The prolonged nature of the adjustment in prime London rents is due to the high levels of supply introduced to the market in recent years. As more landlords sense pricing in the sales market stabilising, increasing numbers are deciding to sell, which is curbing supply and putting upwards pressure on rental values. In St John’s Wood, there was a 24% fall in the number of new lettings properties placed on the market in the year to February 2018 compared to the previous 12-month period, Knight Frank data shows. Stevie Walmesley, St John’s Wood Lettings Manager “The top end of the market has performed strongly and we have agreed 13 tenancies above £5,000 per week in the last year, which compares to 7 in the previous 12 months. Between £2,000 and £3,000, demand had been slower but is strengthening in 2018. Demand from young professionals below that price point remains strong. Tenants like St John’s Wood because of the wide lateral living and the relative value versus some other areas of central London and developers have created some incredible properties that they are renting out due to uncertainty in the sales market. However, some tenants sense a strengthening sales market and are inserting clauses into contracts to give them first right of refusal to buy at the end of the tenancy.” FIGURE 2 St John’s Wood fact sheet Population: 75,636 AGE OF ST JOHN’S WOOD HOUSING STOCK Pre-1900 1900-1939 1945-1972 1973-1999 2000-present 29% 22% 28% 14% 7% ST JOHN’S WOOD STOCK BY PROPERTY TYPE Flat Terraced Semi-detached Detached 5% 1% 1% Source: Knight Frank Research 92% Source: Knght Frank Research / LonRes Lettings transactions Year to February 2018 1,267 Year to February 2017 1,121 Year to February 2016 1,062 Average weekly rental values Year to February 2018 £665 Year to February 2017 £710 Year to February 2016 £690 Maximum achieved weekly rental values Year to February 2018 £25,000 Year to February 2017 £25,000 Year to February 2016 £20,000
Transcript of ST JOHN’S WOOD LETTINGS MARKET INSIGHT 2018 · 2018-04-24 · Regent's Park ST JOHN’S WOOD...
Swiss Cottage
EustonMaida Vale
Lisson Grove
Marylebone
Baker Street
Lord's Cricket Ground
Little Venice
Regent's Park
ST JOHN’S WOOD LETTINGS MARKET INSIGHT 2018 FIGURE 1 Rental values in St John’s Wood Achieved weekly rental values, year to February 2018
Source: Knight Frank Research / LonRes
l Up to £750
l £750 to £1,000
l £1,000 to £2,000
l £2,000 to £3,000
l £3,000+
Prime central London update Average rental values in prime central London fell 2.1% in the year to February. This compares to a decline of -5.1% recorded in February last year and underlines how rental values are bottoming out. The prolonged nature of the adjustment in prime London rents is due to the high levels of supply introduced to the market in recent years. As more landlords sense pricing in the sales market stabilising, increasing numbers are deciding to sell, which is curbing supply and putting upwards pressure on rental values. In St John’s Wood, there was a 24% fall in the number of new lettings properties placed on the market in the year to February 2018 compared to the previous 12-month period, Knight Frank data shows.
Stevie Walmesley, St John’s Wood Lettings Manager “The top end of the market has performed strongly and we have agreed 13 tenancies above £5,000 per week in the last year, which compares to 7 in the previous 12 months. Between £2,000 and £3,000, demand had been slower but is strengthening in 2018. Demand from young professionals below that price point remains strong. Tenants like St John’s Wood because of the wide lateral living and the relative value versus some other areas of central London and developers have created some incredible properties that they are renting out due to uncertainty in the sales market. However, some tenants sense a strengthening sales market and are inserting clauses into contracts to give them first right of refusal to buy at the end of the tenancy.”
FIGURE 2 St John’s Wood fact sheet
Population: 75,636
AGE OF ST JOHN’S WOOD HOUSING STOCK
Pre-1900
1900-1939
1945-1972
1973-1999
2000-present
29%
22%
28%
14%
7%
ST JOHN’S WOOD STOCK BY PROPERTY TYPE
Flat
Terraced
Semi-detached
Detached
5%
1%
1%
Source: Knight Frank Research
92%
Source: Knght Frank Research / LonRes
Lettings transactions
Year to February 2018 1,267Year to February 2017 1,121Year to February 2016 1,062 Average weekly rental values
Year to February 2018 £665Year to February 2017 £710Year to February 2016 £690
Maximum achieved weekly rental values
Year to February 2018 £25,000Year to February 2017 £25,000Year to February 2016 £20,000
Important Notice © Knight Frank LLP 2018 - This report is published for general information only and not to be relied upon in any way. Although high standards have been used in the preparation of the information, analysis, views and projections presented in this report, no responsibility or liability whatsoever can be accepted by Knight Frank LLP for any loss or damage resultant from any use of, reliance on or reference to the contents of this document. As a general report, this material does not necessarily represent the view of Knight Frank LLP in relation to particular properties or projects. Reproduction of this report in whole or in part is not allowed without prior written approval of Knight Frank LLP to the form and content within which it appears. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names.
ST. JOHN’S WOOD LETTINGS MARKET INSIGHT 2018
RESIDENTIAL RESEARCH
Source: Knight Frank Research / LonRes
Contains OS data © Crown Copyright and database right 2017
Swiss Cottage
EustonMaida Vale
Lisson Grove
Marylebone
Baker Street
Lord's Cricket Ground
Little Venice
Regent's Park
FIGURE 3 Where is renting most prevalent in St John’s Wood? Number of listings, year to February 2018
FIGURE 4 Rental market analysis by property type
Source: Knight Frank Research / LonRes
Average achieved weekly rents, year to February 2018
Lettings market breakdown by property type
Type Beds Average achieved weekly rent
Studio 0 £310
Flat 1 £415
Flat 2 £560
Flat 3 £950
Type Beds Average achieved weekly rent
House 2 £660
House 3 £1,100
House 4 £1,960
House 5 £2,790
5.7% 26.9% 32.7% 18.5%
2.5%4.1%1.8%1.0%
n Under 10 n 10 to 30 n 30 to 50 n 50 to 70 n 70-plus
0
100
200
300
400
500
Q1-
2014
Q2-
2014
Q3-
2014
Q4-
2014
Q1-
2015
Q2-
2015
Q3-
2015
Q4-
2015
Q1-
2016
Q2-
2016
Q3-
2016
Q4-
2016
Q1-
2017
Q2-
2017
Q3-
2017
Q4-
2017
Q1-
2018
Tota
l ten
anci
es
Ave
rage
ren
tal v
alue
£600
£800
£1,000
£5,200 £5,250 £20,000 £5,500 £5,000 £7,500 £8,000 £4,500 £20,000 £25,000 £17,500 £4,950 £13,000 £15,000 £25,000 £15,000 £15,000
FIGURE 5 Lettings volumes and rental value data
Tenancies agreed Tenancies agreed (incomplete) Average achieved weekly rent Maximum achieved weekly rent
LONDON RESIDENTIAL
Stevie Walmesley St John’s Wood Lettings Manager +44 20 8115 2601
Tim Hyatt Head of Lettings +44 20 7861 5044
RESIDENTIAL RESEARCH
Tom Bill Head of London Residential Research +44 20 7861 1492 [email protected]
PRESS OFFICE
Harry Turner +44 20 3861 6974 [email protected]
Source: Knight Frank Research / Rightmove
