After a fairly busy spring and summer in 2018, the autumn rental market has been showing some signs of slowing down of late. We believe that this is mainly due to the shortage of attractive rental stock in the market particularly in Wapping and in the Docklands. Interestingly, it appears that our existing tenants are choosing to renew their leases in larger numbers instead of moving out after the normal 12 months’ rental period.
As rents have remained fairly steady throughout much of this year, it is becoming more attractive financially for many tenants to simply extend their tenancies rather than moving to different accommodation and incurring the extra moving & transaction costs including new rental contracts, etc.
Of course, BREXIT also plays a role and quite a few tenants, notably those from the EU working in London, are closely monitoring the current political situation and are planning any future moves on the outcome of the current negotiations. After all, March 2019 is not that far away.
Having said all of that, there are two developments worth bearing in mind.
Firstly, there are still numbers of applicants registering with DAA Residential wanting to move into rental accommodation in Wapping and the Docklands. Good quality apartments available for rent that are decorated and furnished to a high quality continue to generate a lot of interest. Invariably, good rental stock will simply be let much faster.
Secondly, historically the rental market has always slowed down in the run-up to winter. This year promises to be no different. Despite BREXIT and the coming onset of winter, we remain confident that landlords with good quality properties will find good reliable tenants. At DAA Residential, as part of our mission we are determined to achieve good rental levels for landlords and to create homes for happy tenants.