{"id":14038,"date":"2016-05-23T17:59:33","date_gmt":"2016-05-23T10:59:33","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=14038"},"modified":"2016-05-23T16:17:56","modified_gmt":"2016-05-23T09:17:56","slug":"chelsea-loses-glamour-for-wealthy-tenants-as-fitzrovia-and-mayfair-soar","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chelsea-loses-glamour-for-wealthy-tenants-as-fitzrovia-and-mayfair-soar\/","title":{"rendered":"Chelsea loses glamour for wealthy tenants as Fitzrovia and Mayfair soar"},"content":{"rendered":"


\nThere are winners and losers in London’s prime central location (PCL) rental market, according to a new report today from LCP, a UK prime residential investment adviser, with once-uber trendy Chelsea losing its allure while ultra-high end Mayfair has soared.But landlords may have to work harder to retain the top-end buck as supply grows and concerns grow over Britain’s upcoming EU referendum.On Friday, Britain’s chancellor of the exchequer, or finance minister, said British house prices would fall 10 per cent to 18 per cent if the country voted for a Brexit.”If we leave the European Union there will be an immediate economic shock that will hit financial markets,” Mr Osborne said.Naomi Heaton, the chief executive of LCP, said on Monday: “In light of the current market conditions, landlords may need to be more flexible to accommodate the higher negotiating power of applicants and to prevent void periods which may erode any increase in rent ultimately achieved.”For as long as this cycle lasts, landlords also may need to be more open to remedial and upgrade works between tenancies.”By area, Marylebone, Fitzrovia and Mayfair have fared best, achieving an average increase in rent of 10.6 per cent for one bed flats and 12.8 per cent for 2 bed flats over the past six months.In contrast, Chelsea and Earl’s Court, traditionally the playgrounds of hip fashion divas and wealthy playboys, have fared the worst, with a 9.7 per cent drop in rents for one-bed flats and a 14.4 per cent drop for two-bed flats.Positive rental increases for newly refurbished properties, “new-lets”, have been seen each quarter since January 2015, averaging 5.5 per cent overall.However, the market is beginning to subdue in the face of global economic uncertainty and Brexit. This quarter, new lets have achieved just a 0.3 per cent rental increase.”Re-lets” [older properties being let to new tenants] have been hardest hit, reflecting a 1.2 per cent rental fall this quarter, LCP says.This is a result of increasing stock on the lettings market, up 26.7 per cent over last quarter, according to Lonres, a high-end residential property researcher. Renewals for existing tenants, however, have reversed the trend with rental increases averaging 3.3 per cent over the preceding quarter.”The overall suppression in rents reflects a market dynamic which was conspicuous during the credit crunch, as tenants capitalise on economic uncertainty to leverage up their bargaining power. This has been compounded by companies cutting their relocation budgets in the face of global instability and, in some cases, delaying relocations in the run up the EU referendum” said Ms Heaton.”A slowdown in the re-let market has been compensated by continued positive renewal increases by tenants in situ. “With landlords often able to achieve contractual rental increases, above that which can be achieved in the open market, average rental growth of 3.3 per cent in the last quarter has been seen in contrast to the softer market elsewhere.”Still, corporate belt-tightening means that small one and two-bedroom properties are reinforcing their position as the hardest working sector of the market. Appetite for these mainstream rental properties remains strong, with void periods down to just 23 days on average.For tenants with the flexibility to move, now is the optimum time to secure the best deal, before rents, in all probability, harden post-referendum. Landlords may also seek to recoup the increased tax burden they will suffer due to increased entry costs with the Additional Rate Stamp Duty and the reduction in mortgage interest relief. Landlords can, therefore, expect an improved picture next year as the market rallies and rents increase to counter the tax and Brexit headwinds” concludes Ms Heaton.chnelson@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Chelsea loses glamour for wealthy tenants as Fitzrovia and Mayfair soar<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

There are winners and losers in London’s prime central location (PCL) rental market, according to...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-14038","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-3Eq","jetpack-related-posts":[{"id":21975,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/weak-pound-creates-bargain-london-property-deals-for-gulf-buyers\/","url_meta":{"origin":14038,"position":0},"title":"Weak pound creates bargain London property deals for Gulf buyers","date":"August 4, 2016","format":false,"excerpt":"\r Arabian Gulf property investors have begun bargain hunting among London's most exclusive addresses as prices tumble.House prices in some of the parts of London most popular with GCC investors have suffered their biggest annual falls in nearly seven years.Average prices in the London district of Knightsbridge fell 7.3 per\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18884,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/london-address-still-desirable-for-gulf-investors-despite-brexit\/","url_meta":{"origin":14038,"position":1},"title":"London address still desirable for Gulf investors despite Brexit","date":"July 6, 2016","format":false,"excerpt":"\r LONDON \/\/ Markets hate uncertainty. But for the brave, uncertain markets are a golden opportunity.Two weeks after the UK's historic vote to cut ties with the EU, there are quite a few overseas investors who are considering that now might be an ideal time to buy that sought-after second\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":53485,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/luxury-london-property-a-growing-headache-for-foreign-investors\/","url_meta":{"origin":14038,"position":2},"title":"Luxury London property a growing headache for foreign investors","date":"May 2, 2017","format":false,"excerpt":"\r For overseas investors in luxury London developments, tumbling sales and slowing value growth of new-build and established homes makes for dismal reading - and it does not look like improving any time soon.Years of overpricing is hurting the market in ultra-prime areas such as Mayfair, while new luxury developments\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":21879,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/prime-central-london-house-prices-tumble-by-most-in-seven-years-and-values-face-major-shock\/","url_meta":{"origin":14038,"position":3},"title":"Prime central London house prices tumble by most in seven years and values face 'major shock'","date":"August 3, 2016","format":false,"excerpt":"\r BloombergHome prices in London's Knightsbridge district dropped 7.3 per cent in the 12 months through July, the biggest annual decline in almost seven years, as Britain's vote to leave the European Union accelerated price drops caused by rising taxes.Values fell 1.5 per cent across central London's best districts, with\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":43391,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/house-prices-tumble-in-londons-most-expensive-neighbourhoods\/","url_meta":{"origin":14038,"position":4},"title":"House prices tumble in London's most expensive neighbourhoods","date":"February 8, 2017","format":false,"excerpt":"\r Home values in the Bayswater district fell 14 per cent in the 12 months through January, the biggest drop in central London's best neighborhoods, as sellers cut their asking prices in the wake of the Brexit vote.Values dropped by an average of 6.7 per cent across the capital's best\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":22967,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/london-property-firms-face-falling-demand-for-new-builds-while-prime-homes-add-sheen\/","url_meta":{"origin":14038,"position":5},"title":"London property firms face falling demand for new builds while prime homes add sheen","date":"August 15, 2016","format":false,"excerpt":"\r While developers in London are still piling into what has long been seen as the gold-plated certainty of property in the capital, some may be heading for a nasty surprise as high-end new-build homes start to lose their lustre for overseas investors.At the same time, the traditional haunt of\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/14038"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=14038"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/14038\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=14038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=14038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=14038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}