It’s a common misconception that renting in Notting Hill remains out of reach for the majority of young professionals and those on more limited budgets in London. In reality, rents for one bedroom apartments in the Notting Hill area have come down by up to 15 percent in the last 12 months and renting in Notting Hill is more affordable than you think. There is plenty of supply in the £350-£450 per week bracket, and savvy applicants, who understand the Notting Hill lettings market, are negotiating hard, and often securing properties for up to 10 percent under asking price.
The lower rents could be attributed to less energised demand for rental properties in Notting Hill. There are a vast number of budget-conscious applicants who won’t have considered looking at renting in Notting Hill, simply because they perceive the rents in the area to be unaffordable. To add to this, a proportion of young professionals working in The City and Canary Wharf, who traditionally would have taken up these apartments, are now opting to live closer to work in the East End of London.
So what does this mean for our landlords? While in the short term, falling rents mean lower yields for landlords, we anticipate that in the long term, rents will readjust to a higher level. Notting Hill will always have a strong property market, and as a counterbalance, landlords’ capital uplift is continuing to rise at an unprecedented pace as the London property market continues to boom. We find that our clients, many of them local residents who have lived here for years and who recognise the true value of the area, will always view it as a secure place to invest.
Associate Director – Lettings, Notting Hill
21 March 2014