London lettings: New developments lead way on asking price in W1
Date : 17 March 2011
Recent concern for the London lettings market does not apply for W1. Since September the Knight Frank Mayfair and Marylebone Lettings departments have had frequent success with a range of newly built apartments and have found that new developments are proving very popular among tenants.
This success is most likely caused by a relative lack of top-quality stock coming to the London property market from the more typical sources of private buy-to-let landlords or company properties.
However, the attraction of living in a new development is clear for those who choose to live in central London for the typical rental term of 1-2 years.
Not only are they modern with new appliances but they come with attractive added extras such as air conditioning, porters, secure parking and full time management.
Kevin Blakebrough, Property Manager at Knight Frank comments:
“We find that tenants will actively look for managed properties, and pay a premium for it. We are on hand to streamline the move-in process for tenants and help with any issues throughout the tenancy, giving a landlord peace of mind from the hassle of looking after a property on a day-today basis.”
For example, Knight Frank fully manages a development of 20 residential units on Portman Square. These range from studios to 3 bedroomed apartments with terraces and are always high in demand. Recent lets in this block have been within 98% of the asking price with the majority receiving multiple offers over a short period.
Other developments on Maddox Street and St George Street have been popular choices for tenants seeking a central London location within easy access of the nearby transport links of Oxford Circus and Bond Street stations. These have proved very popular with an average of 94% achieved rental to asking price.
Kate Townrow of Knight Frank Mayfair lettings believes this success is down to; “our informed market appraisals, drawing on a knowledge of what a typical block or street will command, rental wise. Where properties are priced correctly, we see a lot more applicants, do more viewings and secure good offers quickly, meaning a minimal void period for the landlord, which is a great result all round.”
A frequent mistake is for some landlords is to put the property on the market at an inflated price but be willing to take an offer significantly lower. According to Kate “this is a common error – not only will the property not show up in people’s search queries, but the inevitable result is a longer void period where people watch a property reduce in price over several weeks – all of which could have been occupied to start with.”
The Marylebone Lettings department have additionally had great success with a development on Great Cumberland Place, again with remarkable rents achieved for the landlord, with two further flats recently let at asking price. Mitchell Murphy of Knight Frank Marylebone says “apartments in this block are so popular that they tend to let within one or two weeks of coming onto the market – applicants definitely like the clean, modern finish and natural light that buildings like this offer in the middle of London.”
Current new developments available to rent with Knight Frank include Merchant Square East in the Paddington Basin and NEO Bankside on the South Bank.
For further information, please contact Mayfair Lettings on 020 7499 1012, and Marylebone Lettings on 020 7861 5522.
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Notes to Editors
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Knight Frank, operate from 209 offices, in 47 countries, across six continents. More than 6,840 professionals handle in excess of US$755 billion (£521 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.