Soaring UK Rent Prices: Why Now is the Time for South London Homeowners to Consider Selling

The UK rental market is experiencing unprecedented growth, with the Office for National Statistics (ONS) revealing a 5.5% year-on-year increase in rent prices as of August 2023. This uptick follows a previous increase of 5.3% in July 2023, highlighting the relentless demand for rental properties amid a nationwide housing crisis.

What's Happening Across the UK?

England: A 5.4% annual increase in rent prices.

Wales: A surge of 6.5%.

Scotland: An increase of 6%.

Surprisingly, London leads the pack in England with a staggering 5.9% growth in rent prices—marking the highest annual percentage increase since ONS records began in 2006.

The View From The Ground

Jeremy Leaf, a seasoned estate agent in North London, affirms that the current data echoes the market conditions, notably the scarcity of rental properties. The increased cost of mortgage rates and heightened tax and regulatory burdens are encouraging landlords to exit the rental market, consequently driving up rents.

The Expert Take

Anna Clare Harper, CEO of GreenResi, highlights that public policy has focused more on homeowners, leading to a set of challenges that have accelerated a landlord exodus. This is backed by auction data showing a five-fold increase in traditional landlord properties available compared to last year.

The State of Affairs in Richmond

Harriet Scanlan, a lettings manager at a Richmond estate agency, concurs with this sentiment, citing multiple offers and above-asking price deals as evidence of high demand and low supply.

What This Means for South London Homeowners

Given the rate at which rental prices are rising, especially in London, now could be an excellent time for South London homeowners to consider selling their properties. With a shortage in rental supply, potential buyers, including investors, are likely to be more willing to pay a premium for available homes.

If you're contemplating a move or interested in exploring the lucrative South London property market, look no further. With 20 years of experience specialising in South London properties, I can provide unparalleled expertise and insight to guide you through a successful sale.

Contact me today to find out how you can benefit from the current market trends. Or if you would like to know the value of your home check out my online valuation tool.

Asking Rents Peak - here's what that means for South London Landlords

According to a new report from Rightmove, asking rents in England and Wales have hit a new record high of £1,162 per calendar month. This is up 10.8% from last year, and is the highest level since Rightmove began tracking asking rents in 2008.

According to Rightmove, the average asking rent in South London is £1,323 per calendar month. This is up 9.8% from last year, and is the highest level since Rightmove began tracking asking rents in 2008. The average asking rent varies depending on the specific area of South London. For example, the average asking rent in Lambeth is £1,435 per calendar month, while the average asking rent in Croydon is £1,223 per calendar month.

The high level of asking rents in South London is due to a number of factors, including the strong demand for housing in the area, the limited supply of housing, and the rising cost of living. The report also found that the number of properties available to rent has fallen to a record low of 29,000, which is 40% lower than the same time last year. This is due to a number of factors, including the ongoing shortage of housing supply, the rising cost of living, and the increase in remote working.

What it means if you are letting...

• Make sure that you are on a sensible mortgage rate. If you are on your standard variable and you have no plans to sell up see if there is a simple product switch you can do to benefit from a lower rate and increase your monthly profit margin.
• That said, make sure that you are not running a charity! Increase your rents to market rent. "the tenant is good and pays on time" is great, but it's better if they pay a market rent so that you can get a good return from your investment. If you had stocks and shares invested you would want your dividends, not sending them back to the CEO to enjoy in Barbados.
• Ensure you are offering value. If you are having a tenant switchover make sure that your furniture is tip top, any repairs are done (reported or not) and the place is pristine for the new tenants to take over. Having a property in A* condition is a lot easier to manage and maintain for you and tenants alike because you can all agree it was tip top to start with.

Looking for more letting advice? Drop me a line and see if I can help you. Curious to see what your property is worth? I have an AI-driven tool on my website that can give you a rough estimation. Beware, it's not replacing me just yet so for an accurate appraisal be sure to reach out!

Record-High Rents in South London!

The average rent for a whole property in Lambeth, Southwark and Wandsworth is now a whopping £1,980 per month, according to Property Portal Rightmove. This is up 11% from the same time last year. The average rent varies depending on the borough, with Lambeth being the most expensive, at £2,285 per month. Wandsworth is the second most expensive, at £2,187 per month, and Southwark is the least expensive, at £1,980 per month. Some inflation-busting figures in my table below - how does your property's rent compare to this time last year?

With rents as high as they are in South London, landlords have a great opportunity to maximise their profits. Here are some tips on how to do just that:

• Choose the right property. The location of your property is one of the most important factors in determining how much rent you can charge. Proximity to tube, having storage for bicycles and plenty of parking nearby are all desirable.
• Make sure your property is in good condition. Tenants are more likely to pay higher rent for a property that is clean, well-maintained and has all the amenities they need. If there are any outstanding maintenance jobs then get them done before showing tenants around and offer everything in tip top condition for viewing.
• If you have a good property in a desirable area, you should be able to command a higher rent. 
• Consider investing in energy-efficient upgrades to your property, as this can help you attract tenants who are looking to save money on their energy bills. Grants may be available.
• If you have a long-term tenant who is a good payer, consider the pros and cons of reletting the property to a new tenant. Often times a meet in the middle between market rent and the cost of remarketing will help the tenant stay longer and avoid the costs of finding a new tenant.

If you are looking for a market appraisal to see what your property is worth in today's market then look no further. Check out my online valuation tool or drop me a line and I'd be happy to come and visit.

Rents at All-Time High in South London

It will come to nobody's surprise that recent data highlights that UK rents were up 15% in Q1 2023 compared to Q1 2022 with average monthly room rents at an eye-watering £683 - unsurprising therefore that tenants are struggling to find affordable housing. Alas the cost of inflation and high energy prices are working its magic on the rental prices at the moment.

I can tell you that from my research the average room rents reached a staggering £952 in Q1 2023, and not a single postcode in London has an average monthly room rent of under £700. South London average room rent stands at £681 as I type!

Here is what I found!

Postcode	Lowest rent	Mean rent	Median rent	Mode rent	Highest rent
SW2	£400	£650	£600	£550	£1,000
SW4	£350	£626	£600	£575	£1,200
SW8	£550	£700	£650	£600	£1,200
SW9	£500	£675	£650	£600	£1,200
SW11	£450	£650	£600	£550	£1,100
SW12	£400	£650	£600	£550	£1,200
SW13	£500	£700	£650	£600	£1,200
SW14	£450	£650	£600	£550	£1,200
SW15	£500	£700	£650	£600	£1,200
SW16	£350	£635	£600	£550	£1,200
SW17	£450	£600	£550	£500	£1,000
SW18	£500	£650	£600	£550	£1,000
SW19	£600	£800	£750	£700	£1,200
SW20	£550	£700	£650	£600	£1,000

Why?

Well, South London landlords have been selling up, plain and simple. 66 rental properties per day are being sold and occupied by homeowners, decreasing the supply of rental stock. This is leading to great profits for those that want to stay in the market and put up with the ever increasing amount of red tape, taxation and risk associated with letting their property. As I wrote about previously the proposed Renter's Reform Bill is doing nothing to aid the pro-landlord sentiment, that is for sure.

If you are on a low loan-to-value mortgage you will have built up enough equity to ride out the high interest wave and fix at a reasonable rate, but for those that entered the market less than 10 years ago they will find it touch to make a decent return off their investments. Many are not breaking even once repairs, letting fees, accountancy fees and so forth are factored in.

So is selling for you? Depends on your personal situation of course. Happy to have a conversation about what the market is doing. Reach out via email and let's start the conversation.

Live in Clapham? About to Retire and Privately Rent? You Could be £13,400 a Year Worse Off!

You read the personal finance pages of the newspapers and it all seems to be the impending pensions crisis ... where people aren’t saving enough for their retirement. But it’s not the lack of Clapham peoples’ future pension incomes that are my immediate concern. The fact is that so many of the future retirees in Clapham over the coming decade, who never bought their home in the Millennial years of the 1990’s and 2000’s, will have to make some tough decisions regarding what house they live in when they retire anytime between now and 2038.

In Clapham (or SW4 to be exact), there are 193 privately rented households, where the head of the household is between 50 years and 64 years of age (meaning they will be retiring anytime between now and 2038). They are working now and easily paying the rent, yet what happens when they retire?

A Clapham retired couple, who currently privately rent and who have paid their fully qualifying NI stamp over the last few decades are likely to retire with the couples State Pension of £1,091 per month plus a tiny bit of private pension if they are lucky. Given that the average rent in Clapham is £2,029 a month - a lot of that pension will be lost in rent. This means taxpayers will have no alternative but to step in and top up the rent payments with Housing Benefit, yet...

The maximum housing benefit for a couple in Clapham is currently £910.87 per month … leaving a significant gap when you consider the average rent in Clapham is £2,029 per month

It is most people’s opinion that retirees are either council tenants or own their home outright. Looking at these figures though, it looks like both these ‘mature’ private renters could be having to make some decisions on their lifestyle and where they live, possibly looking at downsizing the home they rent to make things more affordable in their old age. Also, the government will be in for a horrible surprise as more of Clapham people retire and continue to rent from a private landlord. Numerous Clapham private renters, with little or no savings, will have to rely on Housing Benefit, which will put greater pressure on the public purse.

The average Clapham retiree will need to find £13,418 pa to stay in their privately rented home after retirement

A recent report from Scottish Widows suggested that 1 in 8 OAP’s will be privately renting by 2032, up from the current one in 15.47 OAP’s whom currently private rent (or 6.47%). In fact, in that report they said the equivalent of more than one-third of the whole annual NHS budget would be spent on Housing Benefit for OAP’s in retirement living in private rented property.

What does this mean for mature Clapham homeowners? I see many using equity release schemes to stay in their homes to pay for a better retirement and others more open to downsizing, selling their large home to a family that needs it and moving into a smaller apartment or bungalow ... yet lets be frank - they aren’t building bungalows in large numbers in Clapham anymore.

And for the Clapham landlords? Well with the younger Millennials showing no appetite in jumping onto the homeownership bandwagon anytime soon, it can only result in the demands on the buy to let market from Clapham tenants rising substantially. Of course, many Millennials will inherit money from their home owning parents in the coming few decades, yet a lot won’t as it will be spent on nursing home care and any leftovers (if any) split between siblings.

For those retiring in post 2050/2060, there is better news as official reports suggest those retirees will enjoy a State Pension approximately similar to today’s pensioners with auto-enrolment into top-up private pensions through their employer.

The solution to all this is to build more homes, of course. Last year we created/built just over 217,000 households in the UK, up from a post Millennial average of just under 150,000 households a year. We need to get back to the building booms of the late 1960’s and early 1970’s when on average 300,000 households were built ... but back to reality ... that won’t happen so it looks like we are turning into a nation of renters, which is of course good news for Clapham’s buy to let landlords!

Do let me know if you are looking to invest and you could use a hand. if you are a ready and able investor sign up to my list that will bring packaged deals to your inbox! If you are looking for no-obligation advice then drop me a line and let's start the conversation.

Rents are rising for Clapham Landlords - are they rising for you?

Those of you that know me know that I'm a keen lover of BTL. A steady, passive income stream. Whether you are into single let ASTs or slightly more work/reward and you invest in HMOs, truth remains is that many people I meet are struggling with the FEAST/FAMINE that comes with building, development, buy to sell, you name it.

Nothing beats a steady income stream. Steady, yes you read that right. It's steady. After all, if rents aren't paid you've protected yourself with a rental warranty, right??

So why am I so keen, especially now when the government has it out for us poor landlords?

Simple. Today is January 31st. The day of the self-assessment tax return. The day when a lot of landlords will be hit with the hard reality that their taxes have gone up, because they've not been paying attention. They've let their investments ride on the capital appreciation of years gone by, being able to refinance their way out of trouble. Not any more. These landlords will be calling their agents tomorrow if not today and demand rent increases because hey, costs have gone up! And if everyone's costs are going up (taxation) then tenants will bear the cost. To an extent. You can't just ask what you want and expect to get it, come on landlords you're not a millennial!

But the truth is that a lot of landlords will be hit with higher agency fees in the next 6 months too as the tenant fee ban comes into effect. That's another 10-25% on top of the letting fee. I've run an agency; my income was split 75/25, with 25% of revenue coming from tenant fees. That's a profit margin in a business if the agency doesn't take action!

But rents can't rise forever, you say? Yes they can. ONS has wage inflation at 3.3% in the 3 months leading up to November 2018. Tenants, on average, have the means to pay. Landlords, on average, have significantly increased costs this year. You do the maths! Rents were up in the final quarter (in London) by 2%, and voids down to 4 days from 5 days the year before as reported by a large independent estate agency which operates Londonwide.

These are cold hard facts. Yet I was at a well-known property networking meeting last night and landlords were advised to be cautious and not to raise rents beyond the tenants' ability to pay. This goes without saying of course. My age old adage is to charge market rent. What is fair for me, before I consider what is fair for the tenant. After all they are not going to be paying the tax bill; I'm obliged to operate as a business and charge a fair market rent; ultimately those that do not and undercharge will find themselves without profit and sell up sooner rather than later. Being a landlord is not a charity-led enterprise after all!

Buy To Let still is my favourite property strategy. It's long-term, the gains are good over time and most of all it's still the most reliable source of income - as a great man once said, don't wait to buy property, buy property and wait.

Clapham House Prices vs Clapham Rents since 2006

The Clapham housing market is a fascinating beast and has been particularly interesting since the Credit Crunch of 2008/9 with the subsequent property market crash. There is currently some talk of a ‘property bubble’ nationally as Brexit seems to be the ‘go-to’ excuse for every issue in the Country. Upon saying that, looking at both what we do as an agent, and chatting with my fellow property professionals in Clapham, the market has certainly changed for both buyers and sellers alike (be they Clapham buy to let landlords, Clapham first time buyers or Clapham owner occupiers looking to make the move up the Clapham property ladder).

Clapham house values are 5.7% lower than a year ago, and the rents Clapham tenants have to pay are 0.3% lower than a year ago

When we compare little old Clapham to the national picture, national property values have risen by 0.4% compared to last month and risen by 3.0% compared to a year ago, and this will surprise you even more, as nationally, property values are 19.8% higher than January 2015 (compared to 11.4% higher in the EU in the same time frame).

However, if we look further back...

Since 2006, Clapham house values are 111.7% higher, yet the rents Clapham tenants have had to pay for their Clapham rental property are 32.6% higher

...which sounds a lot, yet UK inflation in those 12 years has been 42%, meaning Clapham tenants are 9.4% better off in ‘real spending power terms’.

Looking at the graph, the rental changes have been much gentler than the roller coaster ride of property values. I particularly want to bring to your attention the dip in Clapham house values (in red) in the years of 2008 and 2009 ... yet as Clapham property values started to rise after the summer of 2009, see how Clapham rents dipped 6/12 months later (the yellow bars)…. Fascinating!

So, we have a win for tenants and a win for the homeowners, as they are also happy due to the increase in the value of their Clapham property.

However, maybe an even more interesting point is for the long-term Clapham buy to let landlords. The performance of Clapham rental income vs Clapham house values has seen the resultant yields drop over time (if house prices rise quicker than rents – yields drop).

Whilst, it’s true Clapham landlords have benefited from decent capital growth over the last decade –with the new tax rules for landlords – now more than ever, it’s so important to maximise one’s yields to ensure the long term health of your Clapham buy to let portfolio. More and more I am sitting down with both Clapham landlords of mine and landlords of other agents who might not be trained in these skills - to carry out an MOT style check on their Clapham portfolio, to ensure your investment will meet your future needs of capital growth and income. If you don’t want to miss out on such a MOT check up, drop me a line – what have you got to lose? 30 minutes of time against peace of mind - the choice is yours.

Do let me know if you are looking to invest and you could use a hand. if you are a ready and able investor sign up to my list that will bring packaged deals to your inbox! If you are looking for no-obligation advice then drop me a line and let's start the conversation.

£2,188 pcm – The Average Clapham Rent

The rents paid by Clapham tenants are now standing at £2,188 per calendar month (PCM), a rise of 2.25% year on year and 0.45% higher month on month.

However, this attention-grabbing monthly rent figure masks stark differences in the various different parts of the Clapham rental market. Demand in Clapham for high quality family homes with two or three bedrooms in good catchment areas for schools remains really robust due to tenants wanting access to the schools. Other influencing factors that make certain areas popular are the proximity to transport links. However, I have noticed a drop in demand (and thus rents achieved) for property where the landlord hasn’t kept the property fresh; in terms of decoration, carpets, replacement windows and poor heating.

So, what does all this mean for Clapham landlords and tenants?

With the new tax rules for landlords, many believed that the number of rental properties would narrow throughout 2017, as landlords sold up their Buy to let properties and looked to invest their money elsewhere, but evidently this hasn’t happened (yet). Feasibly Clapham landlords are re-mortgaging their Clapham buy to let properties instead, as they still believe it’s a safer investment than looking, say at the stock market?

However, demand remained strong in 2017 for Clapham private rental properties, meaning the rents being achieved were at a decent level for landlords. Keeping your outgoings low is also an important consideration and so I looked on a well-known financial services comparison site this morning and found a High Street bank offering a 5-year fixed rate for Buy to let landlords with a 40% deposit/equity for 2.17% … I can remember (as I am sure many of my readers of this blog can) when mortgage rates were at 15% - this is cheap money!

Looking at property values in Clapham, over the last 12 months and specifically at the lower of the market where buy to let landlords tend to buy their rental properties. Flats/apartments have risen in value by 1% whilst terraced properties have risen by 0.64%.

Some Clapham landlords have seen the yields they are achieving remain squeezed.

However, most landlords can start to feel assured that as capital growth in Clapham remains at a more realistic figure (good for long term stability in the property market) and long-term rents are on the rise, the overall corresponding annual return on investment (Annual ROI being annual capital + annual yield) has stabilised in all areas and is now starting to grow.

With additional people seeing renting as a long-term option, even with the challenges of the new tax regime, Clapham landlords, with the support of a good advice and opinion, should continue to see renting as a good investment vehicle.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

Clapham’s £96,067,680 “Rentirement” Property Market Time Bomb

Yes, I said ‘rentirement’, not retirement ... rentirement and it relates to the 193 (and growing) Clapham people, who don’t own their own Clapham home but rent their home, privately from a buy to let landlord and who are currently in their 50’s and early to mid-60’s.

The truth is that these Clapham people are prospectively soon to retire with little more than their state pension of £155.95 per week, probably with a small private pension of a couple of hundred pounds a month, meaning the average Clapham retiree can expect to retire on about £200 a week once they retire at 67.

The average rent in Clapham is £2,074 a month, so a lot of the retirement “income” will be taken up in rent, meaning the remainder will have to be paid for out their savings or the taxpayer will have to stump up the bill (and with life expectancy currently in the mid to late 80’s, that is quite a big bill … a total of £96,067,680 over the next 20 years to be paid from the tenant’s savings or the taxpayers coffers to be precise!

You might say it’s not fair for Clapham tax payers to pick up the bill and that these mature Clapham renters should start saving thousands of pounds a year now to be able to afford their rent in retirement. However, in many circumstances, the reason these people are privately renting in the first place is that they were never able to find the money for a mortgage deposit on their home in the first place, or didn’t earn enough to qualify for a mortgage …and now as they approach retirement with hope of a nice council bungalow, that hope is diminishing because of the council house sell off in the 1980’s!

For a change, the Clapham 30 to 40 somethings will be better off, as their parents are more likely to be homeowners and cascade their equity down the line when their parents pass away. For example, that is what is happening in Europe where renting is common, the majority of people rent in their 20’s, 30’s and 40’s, but by the time they hit 50’s and 60’s (and retirement), they will invest the money they have inherited from their parents passing away and buy their own home.

So, what does this all mean for buy to let landlords in Clapham?

Have you noticed how the new homes builders don’t build bungalows anymore ... in fact some would said the ‘bungalow storey’ is over. The waning in the number of bungalows being built has more to do with supply than demand. The fact is that for new homes builders there is more money in constructing houses than there is in constructing bungalows. Bungalows are voracious when it comes to land they need as because bungalow has a larger footprint for the same amount of square meterage as a two/three storey house due to the fact they are on one level instead of two or three.

That means, as demand will continue to rise for bungalows supply will remain the same. We all know what happens when demand outs strips supply … prices (i.e. rents) for bungalows will inevitably go up.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

Clapham Private Rents Hit £35.56 per sq. foot

As I am sure you are aware, one the best things about my job as an investor is helping Clapham other investors with their strategic portfolio management. Gone are the days of making money by buying any old Clapham property to rent out or sell on. Nowadays, property investment is both an art and science. The art is your gut reaction to a property, but with the power of the internet and the way the Clapham property market has gone in the last 11 years, science must also play its part on a property’s future viability for investment.

Many metrics most property professionals (including myself) use when deciding the viability of a rental property is what properties are selling for, the average rent, the yield and an average value per square foot.

However, another metric I like to use is the average rent per square foot. The reason being is that is a great way to judge a property from the point of view of the tenant ... what space they get for their money. Now of course, location (location, location in a Phil and Kirstie style) has a huge influencing factor when it comes to rents (and hence rent per square foot). Like people buying a property, tenants also have that balancing act between better/worse location, more vs. less money and size of accommodation (bigger and more rooms equalling more money) and where they live (location) verses making ends meet.

Interestingly, I know there are a lot of you in Clapham who like to see my statistics on the Clapham property market, so before I talk about the rental figures per square foot, I wanted to share the £ per square foot on the values. In Clapham, the current AVERAGE figures are being achieved (and I must stress, these are average figures, so there will an enormous range in these figures), but on average, properties in Clapham, split down by type are achieving …

• Clapham Detached Property - £829 / sq ft
• Clapham Semi Detached Property - £816 / sq ft
• Clapham Terraced Property - £801 / sq ft
• Clapham Apartments - £827 / sq ft

So, the rental figures:

The extent of space you get for your rent is replicated in the space you get for your money when buying a property. The average size of rental property in the Clapham area is 711.3 sq ft (interesting when compared to the national average of 792.1 sq ft)

This means the average rent per square foot currently being achieved on a Clapham rental property is £35.56 per sq ft per annum

So, what we can deduce from this? Well the devil is always in detail!

Whilst I was able to quote the average overall figure and the fact my research showed it was quite clear from data that there is relationship between the average £ per sq ft figures on property values and average £ per sq ft on rental figures as a property grows in size. However, something quite intriguing happens to those figures, in terms of what the property will sell for and what it will rent for, when we change and increase the size of the property.

My research showed that doubling the size of any Clapham property doesn’t mean you will double the value of it … in either value or rent. This is because the marginal value increases diminish as the size of the property increases. In layman’s terms … Subject to a few assumptions, double the size of the house doesn’t mean double the value … what really happens is a doubling of the size gives only an approximately 40% to 65% uplift in value, but here comes the even more fascinating part … when it came to the rental figures, double the size of the house meant only 20% to 45% in increase in rent.

In a future article, I will be discussing the actual added value an extension can bring ... but in the meantime, in an overall and sweeping statement, most of the time it makes sense to extend if you are going to live in the property as long as the extension is proportionate to the property, but if you are going to rent it out ... possibly not.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

Clapham Apartments are only 18.7% more expensive in REAL terms than 10 years ago

My research shows that certain types of Clapham property are a little more affordable today than what the newspapers might make you think.

Roll the clock back to 2007 just before the credit crunch hit which saw Clapham property values plummet like a lead balloon and the Clapham property market had reached a peak with the prices for Clapham property hitting the highest level they had ever reached. Between 2008 and 2010, Clapham property values lay in the doldrums and only started to rise in 2011, albeit quite slowly to begin with.

Nevertheless, even though property values have now passed those 2007 peaks, my research indicates that Clapham property, especially flats/apartments, are now more affordable than they were before the 2008 credit crunch.

Back in 2007, the average value of a Clapham flat/apartment stood at £387,385 and today, it stands at £560,530, a rise of £173,145 or 44.7%.

However, between 2007 and today, we have experienced inflation (as measured by the Government’s Consumer Price Index) of 25.97% meaning that in real spending power terms Clapham apartments are more affordable than you might initially think … because if you take off the inflation from that rise, apartments are only 18.7% more expensive than in 2007. If the average Clapham apartment (valued at £387,385 in 2007) had risen by 25.97% inflation over those 10 years, today it would be worth £487,989 .. meaning in real terms, property values haven’t gone up as much as you believe.

The point I’m trying to get across is that Clapham property is more affordable than many people think. Clapham first time buyers can get on the ladder as 95% mortgages have been readily available to first-time buyers since 2010.

It really comes down to a choice and if Clapham first-time buyers can get over the hurdle of saving the 5% deposit for the mortgage on the property – they will be on to a winner, especially with these ultralow mortgage interest rates, a mortgage can be between 10% and 30% cheaper per month than the rental payments on the same house.

So why aren’t Clapham 20 somethings buying their own home?

Back in the 1960’s and 1970’s, renting was considered the poor man’s choice in Clapham (and the rest of the Country) a huge stigma was attached to renting. However, over the last 10 years as a country, we have done a complete U-turn in our attitude towards renting - meaning that many people find renting a better option and a lifestyle choice.

Saving the 5% deposit means going without many luxuries in life (such as holidays, every satellite movie and sports channel, socialising or the latest mobile phone – even if only in the short term) therefore instead of saving every last pound to put towards a mortgage deposit Clapham 20 somethings choose to rent.

There is no denying the simple fact that over the next 10 to 15 years, the people who choose to rent instead of buy in Clapham will continue to rise.

Therefore, everyone in Clapham has a responsibility to ensure that an adequate number of quality Clapham rental properties are safeguarded to meet those future demands. Interestingly, what I have noticed though over the last few years are the expectations of Clapham tenants on the finish and specification of their Clapham rental property.

I have perceived that in the past, what a tenant wanted from their Clapham rental property was moderately unassuming because renting a property was only a short-term choice to fill the gap before jumping on the property ladder. Before the millennium, wood chip wall paper and twenty-year-old kitchen and bathroom suites were considered the norm.

However, Clapham tenants’ expectations are becoming more discerning as each year goes by. I have also noticed the length of time a tenant remains in their Clapham property is becoming longer (and this was backed up recently by stats from a Government Report), although I have noticed a tendency for many Clapham landlords not to keep the rental payments at the going market rates - maybe a topic for a future article for my blog?

The bottom line is this … Clapham landlords will need to be more conscious of tenants needs and wants and consider their financial planning for future enhancements to their Clapham rental properties over the next five, ten and twenty years - e.g. decorating, kitchen and bathroom suites etc etc ..

The present-day and future situation of the Clapham private rental property market is important, and I frequently liaise with Clapham buy-to-let investors looking to spread their Clapham rental-portfolios. I also enjoy meeting and working alongside Clapham first time landlords, to ensure they can navigate through the minefield of rental voids, the important balance of capital growth and yield and ensuring the property is returned back to you in the future in the best possible condition.

I hope you enjoyed reading. If you are keen to take things further, be it to start from scratch, or do something a bit more interesting with your current portfolio... Start the conversation on email. I'd love to meet you in person of course at this month's Clapham Property Meet, so do come along. Click here for tickets and more info.

Southwark Has All The Answers For Buy To Let Landlords.

This is a good deal for investors as it is a flat somebody can come along and transform to make it into a rental machine. Buy to let investors can expect to enjoy a cool 6.3% yield if it rents in the region of £320 per week which is great for a London property.

http://www.xandermatthew.com/printable.dtx?propertyid=28EC562E-9821-4505-A191-70C3EE15376B&fromwebdadi=true

Resale will be strong due to the growing interest in the area with the multibillion regeneration on Elephant and Castle nearby which of course will have a ripple effect on neighbouring areas. Southwark is an exciting borough to be involved in with good projected growth in coming years and already been confirmed as the number one borough that has built  the most new homes since 2012. Central London is a very short bus ride away too and ideal for the many that are opting to jump on their bikes to work.

You will find the likes of famous landmarks such as the Shard and Shakespeare Globe in Southwark so Amery house is amongst a healthy cultural background which is sure to grow in the future because of its closeness to central London.

If you are after any lettings or sales advice feel free to ring me in the office on 020 3397 2099 or pop in to the office on Clapham Park Road.

Want to buy a piece of the regeneration in Battersea SW11? Look no further!

This superb ideal investment property should fetch between £400-£420 per week producing a mouth-watering yield of 8% if purchased for the asking price of £267,500!

This flat is perfect placed for those professionals that would like to be close to a train station with Queenstown Road and Battersea Park Stations both within 0.3 miles away. The split level apartment offers 3 double bedrooms which is almost a pre-requisite for sharers so that’s another major box ticked. It can only be purchased by a cash buyer so is ideal for an investor with liquid asset available and looking for a good long term return. Of course there is the multibillion pound investment programme of nearby Nine Elms into homes as well as the £1 billion connecting Underground line which will naturally increase the value of properties in the area.

As always if you want to talk property call the office on 020 3397 2099 or pop in and see us on Clapham Park Road.

http://www.rightmove.co.uk/property-for-sale/property-49150753.html?utm_content=v2-ealertspropertyimage&utm_medium=email&utm_source=emailupdates&utm_campaign=emailupdatesinstant&utm_term=buying&sc_id=15889878&onetime_FromEmail=true

Hot Property in Cold Weather

What has the lettings market of 2015 told us thus far?

We have found in the past that January was an extremely busy month. Up until 2013 we would say it was the busiest month of the first two quarters. This was driven by relationships made and broken over Christmas and New Year’s resolutions to find a new home. We found that one and two bedroom properties were most popular in the early part of the year leading up to Spring.

2014 and 2015 have been different. A different trend is emerging.

This year and last we have noticed that there is a much higher demand for three and four bedroom homes. These offer a lower rent per person and are being snapped up quicker than they would have been a couple of years ago. I feel the main contributing factor is that tenants are now looking for bargains to minimise their spend on rent every month. This has also led to more and more tenants pairing up through on room share sites and through flat-mating events (equivalent of speed dating for a flat mate, could lead to romance - who knows?). in summary the cheaper one and two bedroom flats will still let relatively quickly but any landlords looking to achieve a large rent increase will have to be a little more realistic or may end up being left disappointed with an unexpected void period!

And so we conclude… 2015 so far has left us hunting for bigger properties!

Rent controls, do we need them to stop rents from spiralling out of control?

Not a day goes by that we don't hear about the London property market, and namely that rents are astronomically high. Higher than other parts of the country of course. But so are earnings; and food; and transport; and everything for that matter. We are frequently hearing from tenant action groups calling for lowered rents and a fairer deal for tenants. But what about landlords? Nobody is campaigning for lower mortgages and better laws to stop tenants from withholding rents and so forth...

The latest comes in the leadup to the elections with Labour touting Rent Controls as the latest gimmick to sway voters. Or renters should I say. I can't imagine that many landlords would embrace the idea of the government telling them how much rent they can earn from their investment. That's like the government interfering with the stock market, limiting the rise and fall of share prices.

One argues that renters are being squeezed out due to rents being unaffordable, and research suggests* that 77% of private tenants are in favour of rent controls. This would offer them a fairer deal. In the short term. If rent controls are introduced it would no doubt restrict the number of BTL investors, thus reducing the number of homes to rent. Less choice. Which is bad for consumers, in this case the would-be tenants. And consumers/tenants love choice. I can tell you a thing about that, it takes quite a few viewings before a tenant makes a decision on where to live! 20 viewings is not uncommon.

But as the Telegraph would suggest there is no problem to fix. There is no evidence that would-be homeowners are being pushed out of the market. With various help-to-buy schemes helping to fund deposits and so forth there is plenty of assistance. Would rent controls aid this further? Arguable.

With the elections upon us in the not all too distant future we are finding ourselves under attack by promises of fairer deals, lower taxes, more job opportunities, better education and so forth. But if we read past the headlines and the bold statements, does it hold water?


* Source: The Telegraph Online

Another great investment property!

Well, Christmas out of the way and it’s back on the investment bandwagon! I hope everyone had a welcome break. It certainly looks like the December blues are gone in the London property market and there are some lovely properties to be had.

I came across this particular one with Andrews the other day and I must say it is a charming flat. We have let before in Chalmer’s House and can assure despite it’s rather typical 1930s Art-Deco looks it boasts a host of other things. Rooms are spacious and there is a gym and a roof terrace for residents to enjoy. A lovely property to live in and hence popular with tenants, despite being a little further from Clapham Junction than one would like. Appealing to a slightly more mature tenant who can appreciate better value slightly further from the station this one is sound to attract a good quality tenant. Estimated rental income £350-£375pw, making this one yield 4.9%-5.2% gross at asking price. Not the highest yield in the world, granted, but looking at the photos there is not much more to do than furnish it with some good quality furniture. Bathroom, kitchen and general décor is A*. Happy bidding fellow investors! http://www.rightmove.co.uk/property-for-sale/property-32411193.html

If you've spotted a buy-to-let opportunity or need impartial advice regarding your current property portfolio, feel free to give me a call on 020 3397 2099 or email me at jeroen@xandermatthew.com.

6.8% rental yield in Clapham South

This four bedroom flat in Poynders Garden SW4 has just come onto the market with Foxtons, at an asking price of £399,950.

http://www.rightmove.co.uk/property-for-sale/property-49501853.html

Finished to a reasonable standard, with four good size double bedrooms, a large reception room, and within easy walking distance of Clapham South (Northern Line) and Balham (London Victoria), the property would make an ideal home for professional sharers. 

After studying the floorplan and noting the lack of a bathroom photograph, it seems unlikely that it includes a shower - something most sharers would consider essential. A bathroom refit should be considered if you want to make the property as attractive as possible to prospective tenants. After making minor changes a weekly rent of £525 would be achievable, offering a 6.8% yield at asking price. The recent stamp duty reform also represents a saving of £2,000 when compared to the old 'slab' system.

If you've spotted a buy-to-let opportunity or need impartial advice regarding your current property portfolio, feel free to give me a call on 020 3397 2099 or email me at jeroen@xandermatthew.com.

Buy-To-Let bargain

Just a quick one from me today - blog followers will remember this three bedroom flat in Camberwell from a couple of weeks ago. 

http://www.rightmove.co.uk/property-for-sale/property-49183244.html

The asking price has now been reduced from £335,000 to O.I.E.O £300,000. This represents a potential rental yield of up to 6.7%, a great opportunity for any buy-to-let investor. 

If you're a landlord or developer who's spotted a property with investment potential, email the web link to jeroen@xandermatthew.com and I'll be happy to give you my opinion. 

7% yield in Brixton

This four bedroom flat in SW2 is available through Beresford Residential with an asking price of £375,000. 

http://www.rightmove.co.uk/property-for-sale/property-49181534.html

At over 1,000 sq. ft. and offering four good size double bedrooms plus a reception room, it would make an ideal buy-to-let property. If there's one downside it's the lack of public transport links in the immediate area. Potential tenants would have a 15 minute walk to the nearest train station, but given the demand for four bedroom properties this shouldn't be problematic.

At this time of year it could be expected to achieve in the region of £480 per week, but in the peak summer rental market where sharers are willing to pay a premium for three and four bedroom properties, £525 per week wouldn't be unrealistic. This represents a fantastic 7.3% yield at asking price. 

If you've spotted a buy-to-let or development opportunity in SW London, give us a call on 020 3397 2099 for free advice with no obligation. 

Update on Queenstown Road period flat

Eagle-eyed blog followers will remember me telling you about this 3 bedroom period flat a few weeks ago http://claphamproperty.blogspot.co.uk/2014/10/period-flat-with-excellent-capital.html

http://www.rightmove.co.uk/property-for-sale/property-48777956.html

In the last 24 hours the asking price has been reduced from £565,000 to £535,000, offering a rental yield of 4.4%. The demand for period properties, ongoing regeneration of Nine Elms, and the Northern Line extension to Battersea all bode well for future capital growth prospects, and this is where you'll really see a return on your investment. 

To maximise your future profit I'd suggest testing the water with an offer below the £500,000 stamp duty threshold.

If you're thinking of buying, selling or letting and want a second opinion with no obligation, give me a call on 020 3397 2099 or email kevin@xandermatthew.com.