As we close out the first month of the year, the 2015 residential lettings market in Shoreditch is underway and it definitely means business. Demand is already outstripping supply, with bidding wars taking place amongst tenants for reasonably priced properties. Reports released by ARLA the industries regulatory body are that landlords looking to increase their investment, in buy to let property have increased 3% in the last three months while landlords looking to sell their current portfolio fell 9%. As is the case with the sales market, much of what we see in lettings this year will be dictated by the pending election and an interest rise that feel like it has been on hold for a lifetime. General elections will always cause uncertainty, whoever is likely to gain power and with the housing market being based solely on sentiment, any uncertainty may result in a temporary lull. However, we don't expect this will have lasting implications on the market. "This we feel all leads to an annual growth of 3-5%'" The early signs this year suggest rents will rise in Q1, as agents flooded with new tenant enquiries will compete for stock, pushing prices up in the process. Despite improvements in employment levels across London and the south east, there is evidence that many workers have been priced out of the sales market and are opting to get on with their lives and rent for the foreseeable future. Corporate relocations are also very much in full swing as job changes kick in and people who have been thinking of moving over Christmas start their search. These have a really positive effect on the market and a buzz of activity is usually felt across the board. This we feel all leads to an annual growth of 3-5% by year end. If you are a landlord looking to expand your current portfolio or looking to invest in the buy to let market for the first time please contact me on 020 3589 6500 or neil.leahy@butlerandstag.com.
