Heightened demand sees rise in prime Home Counties property rents

For those landlords taking advantage of an Advanced Rent tenant referencing product who are also considering investment in one of the undoubted gardens of England, the Home Counties, there is good news from Knight Frank. The London estate agent reported that rents in the region had risen by 0.7 per cent in the first quarter of 2014, driven by rental property becoming increasingly sought-after in the area.

The news shouldn't be a shock given the typical nature of the local market, of staff relocating for work in the London financial services and Thames Valley blue chip sectors, combined with the increasing buoyancy of the UK economy. These developments are contributing to a greater number of lettings in the Home Counties, with the index suggesting that five of the seven areas it covers saw unchanged or heightened rents in the first quarter.

The greatest rise, 4.9 per cent, was observed in Guildford, followed by a 3.6 per cent increase in Beaconsfield and 3.5 per cent in Virginia Water. Ascot saw its rents rise by 1.1 per cent over the period, while they were static in Henley. Such rises tally well with the most recent CBI/KPMG London Business Survey of the city's business leaders and chief executives, who expressed a level of optimism about the economy unmatched since 2010. Indeed, 56 per cent of London firms indicated that they were taking on more staff.

There was also a 38 per cent increase during the first three months of the year in the number of new applicants registering with Knight Frank's Home Counties letting agents, compared to the first quarter of 2013. The same period also saw 11 per cent more viewings. It's little surprise, therefore, that there was a 74 per cent year-on-year rise in tenancies agreed over the quarter. More 'try before you buy' family tenants have been seen in the Home Counties recently, say local letting agents, as incomers get accustomed to the area before buying a property outright.

The report concludes by predicting a higher number of deals in the £3,000 plus per month bracket as the summer months wear on, with activity in 2014 having thus far largely centred on the sub £3,000 per month market. For landlords looking to tap into the strengthening Home Counties rental market, Advanced Rent's tenant referencing products can be invaluable. While free tenant referencing is included in every one of our landlord products, we can also provide tenant referencing and credit checking on a standalone basis.

Editor’s Note: Advanced Rent (http://www.advancedrent.co.uk) is represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.