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London landlords jubilant as rents reach '£1 High Club'

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London landlords jubilant as rents reach '£1 High Club'

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

London landlords jubilant as rents reach '1 High Club' London landlords jubilant as rents reach '1 High Club'

Image: Money via Shutterstock

Delighted central London landlords have seen average weekly rents climb to £1.05 per square foot, meaning only one thing: Payday.

Pleased property owners have been blessed with a 4% overall rise, pushing rates into the enchantingly titled '£1.00 High Club'.

Sadly for Knightsbridge (last year's most expensive area) prices actually fell 11%, to £1.22 per sq ft, and shamefully lost first place to auspicious Mayfair, where tenants pay a whacking weekly average of £1.31 per sq ft.

Meanwhile, the ‘increasingly fashionable’ Marylebone remains the most popular location amongst London’s tenants, showing a 23% growth in rents to £1.13.

Marylebone is now the third most expensive area, joining the ‘£1.00 High Club’ where weekly rents stand at over £1.00 per square foot.

Also joining the ‘club’ for the first time is South Kensington, following a 14% increase in average rents.
However, no doubt inconsolable Notting Hill has been relegated, with weekly rents falling to a mere 93p per sq ft.

The findings came from research conducted by London Central Portfolio Ltd, which also revealed that void periods in the area have dropped by 25%.

LCP's CEO, Naomi Heaton, said: "For the last few years, rents in less traditional areas have lagged behind the rapid increase in sales values which have been witnessed as the centre of gravity in PCL moves to locations around main transport links, but with plenty of architectural heritage.

"As gentrification continues, the smart buy-to-let investor will look away from PCL’s trophy locations to the areas with more pzazz, where there is still room for rents to increase.

"Our fourth Central London Property Fund recognises this and whilst acquiring, as always, a portfolio of properties in all the prime postcodes surrounding Hyde Park, we will focus our attention on these up and coming areas.”

Profit table:

Area

Ave weekly rental per Sq ft 2014

Rank

Change from 2013

Mayfair and St James

£1.31

1st

2nd

Knightsbridge

£1.22

2nd

1st

Marylebone

£1.13

3rd

5th

Kensington

£1.05

4th

3rd

South Kensington

£1.04

5th

6th

Chelsea

£0.97

6th

8th

Notting Hill

£0.93

7th

4th

Bayswater & Paddington

£0.93

8th

7th

Pimlico

£0.83

9th

9th

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