Large family homes are driving up residential property rents in London with an average increase of 3.1% in the first three months of this year and a 7% rise for houses with five bedrooms or more, according to new research.
Properties in central west areas of the capital and north west locations that are typical family areas have benefitted the most, according to the data from property consultants Cluttons. These properties are the top choice for families who have been priced out of the sales market but still want to live in Prime Central London.
Other reasons for their popularity include those who are refurbishing their own properties and renting while the work is completed, a report from the company says.
Four bedroom houses also performed above average with an uplift in rents of 5.8%, while two bedroom flats and cottages had the smallest increase in rental values in the three months to March 2010 at 1.9% and 1.7% respectively. Central west London recorded the highest increase in rental values this quarter at 5.6%, followed by central north west which recorded an increase of 3.2%.
‘Large family homes, which suffered most during the recession, are now back in favour in many areas, with the highest uplift in rental values of all property types. This is largely led by the demand for four and five plus bedroom houses in central west and central north west London, where buying a good sized property remains out of reach for many families. It is also being driven by those renovating their own properties and those who are waiting to buy until the impact of the general election is clear,’ explained Amelia Greene, Partner for Residential Lettings at Cluttons.
‘Rental values have bounced back in the last quarter, and are now in positive territory annually, the first positive annual growth since the second quarter of 2008. This growth has been evident across all London submarkets. However, rents remain below the peak experienced in the first quarter of 2008,’ she added.
The detailed figures show that rents for studio flats rose 2.4%, one beds were up 2.1%, two beds increased by 1.9% and two to three bed cottages or mews rose 1.7%. While three to four bed flat rental prices went up 3.3%. four bed house increased by 5.8% and five beds and more saw 7% growth.
The research also shows that rental charges went up 5.6% in central west London, up 3.2% in central north west London and 2.4% south west of the river. They also went up 2.2% in the south bank, City and docklands and 1.2% in central south west London.