Following the release of the Foxtons London Lettings Report Q2 2017, there’s positive news for London’s renting population, with average weekly rents decreasing year on year.
You can read the full report here, read about the London rental market in your area, or read on for a quick summary.
Rents are lower
Rents across all London transport zones in Q2 of this year were down compared to Q2 2016. Weekly rents in Zones 3-6 were lower by nearly 5% on average and 3% in Zone 2.
To be more specific, the average rental price for a two bedroom flat in Zones 3-6 was £361 per week in Q2 2017, while in Q2 2016 the weekly rent was £383.
This is partly to do with the higher number of properties in the rental market caused by uncertainty in the sales market. More choice leads to lower rental prices overall as renters are under less pressure to commit to a certain deal.
So that’s great news for renters – more choice of properties and a decrease in rental prices.
Where are people searching?
According to the report, the majority of renters are searching for a property in Zone 2 – nearly 40% of you, in fact.
34.5% of London’s renters are searching in Zones 3-6, while 26.2% are looking in Zone 1; although this number is up 2.8% from Q1 of 2017.
There’s a premium for furnished flats
As you may know, tenants will usually pay a premium for furnished properties, as this is an expense to the landlord. But how much is this premium?
The Foxtons London Lettings Report reveals that there is a 21.9% price premium for furnished flats in Zone 2 compared to unfurnished flats. The lowest price premium is in Zone 1 at 7.8%.
Tenants will also pay a 17.6% premium for flats on the raised ground floor, according to the average price per square foot. However, prices for properties on the ground floor are 12.4% cheaper.
