Rental prices in London - up or down?

[RacingPete]

I am currently renting with the evil that is Foxtons (purely as it was the nicest flat, and would have loved to use someone else), anyway I don't trust them too much.

They are telling me that the rental market has gone up between 5% and 8% since 16 months ago when I first rented the flat. Now I have been monitoring the house market during that time and recently started looking at alternative accommodation and comparing it to what I was looking at back then and I haven't noticed that increase.

I am looking in South West London around Putney/Wandsworth/Wimbledon/Clapham area, so has anyone got a better feel for me on whether the rental market has gone up or down in the last year to 18 months in that area, or in London as a whole?

[RacingPete]

For anyone that is interested I have found two sites on the Internet for this:

• http://www.rentright.co.uk/postcode/SW18+/2_rrpi.a... - Rental trends on the Rent Right website
• http://www.findaproperty.com/media/rental-index/Fi... - A report from Find A Property.

Seems that prices have maybe gone up 4-5% but not the 5-8% Foxton's are saying!

[JustinP1]

RacingPete said:

They are telling me that they are on commission to raise rents as much as possible and they are targeting to rape my wallet between 5% and 8%. Unless of course I tell them to get lost.

[Soovy]

RacingPete said:

I am currently renting with the evil that is Foxtons (purely as it was the nicest flat, and would have loved to use someone else), anyway I don't trust them too much.

They are telling me that the rental market has gone up between 5% and 8% since 16 months ago when I first rented the flat. Now I have been monitoring the house market during that time and recently started looking at alternative accommodation and comparing it to what I was looking at back then and I haven't noticed that increase.

I am looking in South West London around Putney/Wandsworth/Wimbledon/Clapham area, so has anyone got a better feel for me on whether the rental market has gone up or down in the last year to 18 months in that area, or in London as a whole?

I live in a NICE riverside apartment in Limehouse. I pay £100 a week LESS than I paid to live there when I moved in five years ago.

[RacingPete]

JustinP1 said:

RacingPete said:

They are telling me that they are on commission to raise rents as much as possible and they are targeting to rape my wallet between 5% and 8%. Unless of course I tell them to get lost.

[RacingPete]

anonymous said:

[redacted]

From the self proclaiming rental companies themselves by the looks of it... I do think that rental prices haven't changed much if at all from when I last looked too!

[Soovy]

anonymous said:

[redacted]

In their defence, they do an excellent line in estate agent burds with T M Lewin shirts two sizes too small with their bras showing through the gaps. And ankle chains.

[Beardy10]

Obviously very dependant on area etc but I would say rentalss 18 months ago were pretty poor (the economy had basically stopped) so I would say rentals could have recovered a bit. But 10% ? I know we had trouble renting my wife's old flat out around that time and had to reduce the rent a bit to get someone in it....it's always rented very,very easily.

[spikeyhead]

Soovy said:

In their defence, they do an excellent line in estate agent burds with T M Lewin shirts two sizes too small with their bras showing through the gaps. And ankle chains.

I got quite excited there, until I realised the sort of ankle chain you meant

[RacingPete]

Beardy10 said:

Obviously very dependant on area etc but I would say rentalss 18 months ago were pretty poor (the economy had basically stopped) so I would say rentals could have recovered a bit. But 10% ? I know we had trouble renting my wife's old flat out around that time and had to reduce the rent a bit to get someone in it....it's always rented very,very easily.

Cheers, very useful

[Soovy]

spikeyhead said:

Soovy said:

In their defence, they do an excellent line in estate agent burds with T M Lewin shirts two sizes too small with their bras showing through the gaps. And ankle chains.

I got quite excited there, until I realised the sort of ankle chain you meant

[allgonepetetong]

Soovy said:

anonymous said:

[redacted]

In their defence, they do an excellent line in estate agent burds with T M Lewin shirts two sizes too small with their bras showing through the gaps. And ankle chains.

Phwoar - got to love that!

[Rags]

I would say that Foxtons are talking out of their arses as usual.

Their target is to stick properties up at the highest possible rental and they use their clever marketing and very good website to attract clueless punters. Luckily for me, this worked with my rental property as I got 12.5% more rent than the other agents valuations (this was a flat in Kingston Upon Thames). However, they still demand stupid fees @ 11% for finders fee.

In terms of rent going up or down, I have only increased my rent with sensible inflation in some cases. In one case, I am receiving exactly the same rental as I was 2 years ago.

There is no rule or pattern I am afraid!

[thornettj]

I look after about 1200 flats in central London, we're looking at c.9% year on year. Hope that helps.

[gilla]

I've moved twice in the last year. I've seen some of the same flats on the market as last time I moved, they are asking 20-25% more for them and in some cases double on flats I looked at 5 years ago. It depends on the area obviously, places like Dalston/Hackey have gone through the roof. South London less so.

[RacingPete]

thornettj said:

I look after about 1200 flats in central London, we're looking at c.9% year on year. Hope that helps.

I take it that is a trend for the whole of London, so inflated by some up and coming areas (as gilla says above). Have you looked at stats in specific areas and seen not much movement?

[RacingPete]

Rags said:

However, they still demand stupid fees @ 11% for finders fee.

Do Foxton's charge a finders fee on renewals of contract or just the first time?
And what is the 11% against, a month's rent, the deposit, the whole contract price?

Just trying to work out if there is a massive benefit to the current landlady staying with me, or if they are just after money it doesn't make a difference who it is that signs on the dotted line.

[okgo]

That probably means I've been to your flat then Rags

The 11% is against the years rent, and is collectable straight away, so basically she will not see any money for a couple of months. and FYI the salesman will make 10% of that.

I do agree with everything said above, HOWEVER.

Whilst they still have the best website, photography, details, opening hours on the market other agents really don't have a leg to stand on.

[RacingPete]

okgo said:

The 11% is against the years rent, and is collectable straight away, so basically she will not see any money for a couple of months. and FYI the salesman will make 10% of that.

...or I assume it is the contract length as I went for 18 months last time (and probably why the sales person always tries to push you to a longer rental term)

So they get that on a contract renewal too?

[Black Sport 160]

Beardy10 said:

Obviously very dependant on area etc but I would say rentalss 18 months ago were pretty poor (the economy had basically stopped) so I would say rentals could have recovered a bit.

Pretty much so.

I had to let one of my flats (NW Kent area) go for the paltry sum of £600pcm last spring as the market was dire in the extreme.

New contract signed last week, back up to £650pcm. What's that? 8% increase or thereabouts.

Bear in mind its only back up to what I was getting from 2004-2008. I've never managed to obtain more than £650pcm since purchase in 2004.