Market Analysis Spring 2011


since December 2009. Overall lettings instructions for the three months to February are much healthier than a year ago. Thanks to landlords looking to take advantage of the strong rental market, instructions for the period are up 21% year-on- year.


Figure 22 Lettings properties available Jan 2009 = 100


100 120 140 160


20 40 60 80


100 120 140 160


0


20 40 60 80


0


Lettings Properties Available Jan09=100


Lettings Properties Available Jan09=100


Lettings Properties Available Jan09=100


100 120 140 160


20 40 60 80


0


Figure 23 Average time to let in weeks


1 2 3 4 5


1 2 3 4 5


1 2 3 4 5


Average Time to Let in Weeks Average Time to Let in Weeks


Average Time to Let in Weeks


Despite strong and continued demand from tenants, the rise in instructions has had a positive impact on the number of rental properties available on the market. There was a steady fall in the number of properties available between August 2009 and October 2010 (numbers fell by over two thirds [68%]), as demand from tenants grew and accidental landlords took their properties out of the market. However, improving lending conditions and attractive returns for landlords has led to a resurgence in the number of properties available to let. Since October 2010, when the stock of rental properties was at its lowest point, the number of available properties has risen by a third (33%). (Figure 21 & 22)


More choice leaves properties on market longer


Figure 24 Average UK monthly rental prices


£1,800 £1,850 £1,900 £1,950 £2,000 £2,050 £2,100 £2,150


£1,800 £1,850 £1,900 £1,950 £2,000 £2,050 £2,100 £2,150


£1,800 £1,850 £1,900 £1,950 £2,000 £2,050 £2,100 £2,150


Average UK Monthly Rental Prices Average UK Monthly Rental Prices


Average UK Monthly Rental Prices


High tenant demand and low numbers of property put increasing time pressure on tenants to make decisions quickly when looking for property in 2010. The average time to let has been in steady decline since the peak of just over four weeks in May 2009 to just under two weeks in September 2010. However the injection of rental properties on to the market since October 2010 has given tenants a little more choice when looking for a


home and this has had an effect on the time taken between a property coming onto the market and it being let. In February 2011 the average time for a property to be let was 19 days, a full week longer that in September 2010 (12 days). (Figure 23)


Rents rise 11% year-on-year


Rents have risen 11% over the last year because of low levels of stock and high demand. In February 2010 the average rent for Winkworth properties across the UK was £1,915 per month but this figure has climbed to £2,126 per month in February 2011. Across the whole of London average monthly rents now stand at £2,194 while properties to let in London’s prime central locations are on the market for an average of £4,016 per month. Average rents outside the London market are now £972 per month.


It is the rise in rents that has tempted a number of landlords to bolster their portfolios and inject more property into the market. However, demand remains strong and is unlikely to diminish as 2011 progresses so we don’t expect the small rise in properties available in the market to have a dampening impact on rental prices. (Figure 24)


Market Analysis Spring 2011


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Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11


Price (£) Price (£)


Price (£)


Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10


Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11


Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10


Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11


Feb-11


Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10


Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11


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