Skip Ribbon Commands
Skip to main content

News Release

London

London's residential rents up 6%; Paddington emerges as growing hot spot

According to Jones Lang LaSalle’s London Residential Heat Maps


London, 24th May 2011 - According to Jones Lang LaSalle’s London Residential Heat Maps rents across London’s residential sector have increased by 6.1 per cent in the past six months from £37.87 per sq ft to £40.20 per sq ft.
 
The biggest growth in rental yields occurred in Paddington (71.6 basis points), West Hampstead (64.3 basis points) and Chiswick (53.7 basis points). Comparatively, average asking prices have grown just 2.2 per cent, rising from £718 per sq ft to £734 per sq ft.
 
James Thomas, Head of Residential Development and Investment at Jones Lang LaSalle, commented: “Over the past 6 months the London residential market has witnessed rental growth escalating faster than capital growth. The market continues to be undersupplied with quality rental stock for the young professional market, while access to the debt market for first time buyers remains limited preventing many would be purchasers getting onto the property ladder.”
 
Thomas continued: “Paddington, West Hampstead and Chiswick all benefit from excellent transport links and are well buffered from void periods so will offer encouraging returns for buy-to-let investors looking for increasing income streams.”
 
The greatest yield compressions (led by capital growth and weaker rental growth) were found in Vauxhall, Greenwich and Clapham.  The bottom-5 postcodes saw an average drop of 59 basis points: SE10 (-49 basis points), W6 (-54.1 basis points), W10 (-60.6), SW8 (-66), SW4 (-66.6).
 
Notes to Editors:
 
·       The London Residential Heat Maps provide an up-to-date snapshot of pricing across the London market, mapped at a postcode level, moving beyond existing indices and borough level price guides.
 
·       The London Residential Heat Maps are comprehensive and built from granular street-level detail.
 
·       The Q1 2011 maps incorporate circa 12,000 properties advertised across Central London.
 
·       The London Residential Heat Maps capture pricing, per square foot, on properties for sale across the residential market during the last quarter.
 
·       Alongside mapping asking prices in the sales market, uniquely, the map also tracks the asking price of residential lettings and offers a view on average investment yields.
 
– ends –