Welcome to our quarterly Kensington & Chelsea lettings market report, for Q2 2018. The report covers the Notting Hill, Holland Park, Kensington, North Kensington, Queens Park and Kensal Rise areas of London (W2, W8, W10, W11, W14, NW6 and NW10).
Headline figures for Kensington & Chelsea
- 3.3% three month change in achieved price (up over 6% from -3.0% last quarter)
- 15% three month change in transaction volume (up over 18.5% from -3.7% last quarter)
- £39 average achieved £ per square foot per annum for a 2-bed flat (up from £37 last quarter)
- 6.4% average discount on initial asking price (down from 6.6% last quarter)
- -26.4% annual change in the number of available properties (down from -25.6% last quarter)
Key Lettings statistics
- Rental values averaged £647 per week for flats (up from £623 last quarter) and £1,307 per week for houses over the last 3 months (down from £1,615 last quarter)
- Properties let over the last 3 months achieved an average of £41.38 per square foot per annum in rent, up from £40.49 at the same time last year.
- The number of properties let over the last 3 months was down 4.6% versus the same period last year and up 15% from 3 months ago.
- Achieved rental values fell by 1.1% compared with the same period last year and rose by 3.3% versus 3 months ago.
- 74 average number of days current inventory has been available (compared with 77 last quarter)
- 32.1% of properties available have been reduced in price (compared with 33.9% last quarter)
- 17.2% percentage of properties currently under offer.
- 74% of properties have an asking price of less than £1,000 per week, down from 75.6% from the same time last year.
- 9.2% of properties have asking prices of more than £2,000 per week (up from 7.8% last quarter).
- 32.7% of flats (down from 33.7% last quarter) and 29.6% (down from 41.6% last quarter) of houses currently available have seen a reduction in asking rents since they were first put on the market.
Expert view by Lettings Director Jared Kilgarriff
Things are certainly looking up since last quarter. The data shows a whopping 15% increase in transactions since the start of the year and our offices have seen an increase in activity in the last few months. Other positive metrics in the quarterly data such as a modest increase in rental prices, less discount on asking prices and shorter time on the market are all proof of a healthier, more competitive market.
We have batted through the May Bank holidays and half terms which tend to be quiet times on the property front in and around Kensington with people opting to holiday rather than house hunt and are busy helping people find homes before the summer break.
The biggest headline for us is the family market where we have seen a big increase on the previous quarter in applicants looking to rent large houses and apartments.
Some may attribute the increased activity in the rental market to people’s reluctance to buy with stamp duty being so high (and high taxes on foreign buyers), the economy slowing and uncertainty over the short-term prospects for price growth in the sales market. This is definitely our experience in the Kensington and Notting Hill market.
An increase in UK based and foreign families staying or moving into London has transformed what was a slow, stagnant market into a competitive one. Families want the flexibility of short and long-term tenancies close to schools, parks and amenities – the job now is finding available stock for them and with a lot less stock on the market compared to this time last year, this remains our biggest challenge.
If you’re thinking of letting or renting property in Notting Hill, Kensington, North Kensington and the surrounding areas, ensure you get expert advice. Contact our Lettings Directors today to arrange a free consultation.
All data from Lonres.