London build-to-rent spaces on the rise as number of renters expected to increase by 122 per cent by 2030
In London, unprecedented house price growth since the Nineties has put home ownership out of reach for many of today’s twenty- and thirty-somethings.
Private renters now account for 30 per cent of all households in London, which equates roughly to 2.7 million tenants, according to a new study by CBRE.
“Over the next decade the number of renters is expected to increase by 122 per cent with the highest growth forecast in Tower Hamlets,” says Jennet Siebrits, head of residential research at CBRE.
The outer east London district came top of a new ranking by property group CBRE which also took into account which boroughs have the fastest-growing communities of renters.
The local council has revealed £2 billion plans to transform run-down Barking town centre after a “30-year downward trajectory”.
The aim is to bring 6,000 new homes for rent and sale, smarter shops and an art house cinema. The average rent for a two-bedroom rental home is £1,200 in the borough.
Sutton and Waltham Forest came second and third respectively in the CBRE Top 10 best boroughs for renters, with Bexley and Haringey completing the top five. Next come Kingston upon Thames, Hounslow, Hillingdon, Greenwich and Havering.
However, over the last year the average monthly rent for a two-bedroom property in London has finally fallen, by around 10 per cent to £1,900, as the market hit an affordability ceiling, Jack Spellman of London estate agents at LiFE Residential explains.
For the second year running Bexley and Havering have the lowest average rents per calendar month, at £1,100 and £1,125 respectively.
During the recent slump in high-end home sales, many estate agents turned to rentals to replace lost revenue. “My business would have gone under if we hadn’t expanded into lettings very quickly after the market turned in 2015,” one luxury brand told Homes & Property.
“Demand for London rentals has rarely been stronger,” says Lucy Morton, head of residential at JLL. “So strong, in fact, that we have seen an increasing number of applicants willing to pre-let their new apartments off-plan.”
Source: Home & Property