London rental market set for strong January after post-Christmas divorcesComments Off on London rental market set for strong January after post-Christmas divorces
The property letting market is set for a strong start in 2016 thanks in part to post-Christmas divorces, according to estate agents Marsh & Parsons.
The company said that January is likely to be the strongest month outside of the summer for lettings activity.
“Come January, households will be picking up where they left off on big life decisions – be this downsizing, starting a new job, relocating overseas or even separating and moving out of the marital home,” said Patrick Littlemore, Marsh & Parsons’ director of lettings.
That will kick start a resurgence in rents, where growth in London has slowed thanks to weak activity at the top end of the market.
“As tenant demand mushrooms in January, this initial activity will feed into stronger and more sustained rent growth throughout 2016 as a whole,” Littlemore said.
Marsh & Parsons predicts that overall growth in the prime London rental market in 2016 will hit 5% – a significant bounce from 2015’s 1.9% growth.
Properties in lower price brackets are likely to be the main beneficiaries, especially in hot spots like Queens Park, Littlemore added.
Landlords may also be able to secure tenants for longer, as house hunters want to lock in a property amid a shortage of rental options.
The average tenancy on a rental property in Prime London has grown 18% in the past year to 23 months.