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South West London Rental Market: 2018 Expectations

  27 Nov 2017

All areas of London have their charm and unique style, but you can easily see why many people are keen to live in South West London. There are a number of distinct areas that appeal to a lot of folk and this is why there will always be demand to find rental property in this area.

Whether someone is looking for a cosmopolitan lifestyle, associated with Chelsea, Kensington or Fulham; looking for a lively community, such as you can find in areas like Clapham, Brixton, Streatham or Tooting or even the tranquil surroundings of Wimbledon, Putney or Barnes, the South West of London has a lot to offer.

South West London has a lot to offer

Of course, this level of demand for property in the area means that you often have to pay a high price and this can be seen in some of the rental prices. According to the website, the average rents in South West London stand at £2,795 per calendar month (pcm) but of course, this is made up from a wide range of rental fees.

Current market rents in key South West London areas include:

  • Chelsea £5,873 pcm
  • Kensington £4,766 pcm
  • Fulham £3,349 pcm
  • Putney £2,794 pcm
  • Barnes £2,679 pcm
  • Wimbledon £2,282 pcm
  • Clapham £2,072 pcm
  • Tooting £1,943 pcm
  • Brixton £1,773 pcm
  • Streatham £1,576 pcm

The range of rents per month across South West London means that it isn’t always easy to look at the area as a whole and make a prediction. When it comes to property prices, there was a lot of focus in October of 2017 about the fact that London house prices had fallen while prices across the rest of the country had risen. There is an acceptance that in some parts of London, and the affluent areas of South West London can be included in this, prices have plateaued and many people would agree that a slight fall wouldn’t be the worst thing.

The rental market is different though and even if property prices fall in some areas, there is still an expectation that rental prices will outstrip their property counterparts.

Rents are expected to rise in South West London

There have been expectations that rents would rise higher than property prices in the next few years for some time and it is likely that this will occur in 2018. In early 2017, the Royal Institution of Chartered Surveyors predicted that will property values in the country would grow by less than 20%, rents would increase by more than 25% in the next five years.

  • The reason why so many people are confident about rents rising is the fact that there are so many different factors impacting on the rental market, all of them causing people to think that rents will rise. Some of the factors include:
  • The uncertainty over Brexit meaning many people are holding off making a buying/selling decision
  • The increased pressure and financial costs on landlords seeing them pass costs on to tenants
  • The increased pressure and financial costs on landlords seeing some drop out of the market, decreasing the supply of rental accommodation
  • An increase in interest rates making it harder for some people to obtain a mortgage
  • A lack of supply of property in general

The last point, about the lack of supply of property in general, is the most important factor in the property and letting market, and this is true in South West London. Until there is a large supply of affordable housing, it is unlikely that there is going to be any dip in the demand for rental accommodation or for the price of rental fees.

If you are looking for guidance about the South West London rental market, make sure you come and speak to Jezzards, and we will be more than happy to help you find the right solution.


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