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Latest Canary Wharf rental market advice for professional sharers

In Canary Wharf and the surrounding areas, average rental values in Q2 this year remained virtually flat year-on-year, down just 0.1% on the same quarter in 2017. That said, there was an enormous 51% decline in available properties to rent in the same period, signalling a shortage of supply in a market that is rife with growing tenant demand. It is our strong belief that there will be considerable upward pressure on rental prices, peaking around this time next year once there is certainty following Brexit. Landlords are attempting to escape the market but competition to sell is also at an all-time high, and unless properties are considerably under-priced there is little activity, so it is our recommendation to landlords that they continue to supply the market with quality rental units, for which demand will translate to considerable price growth in 12 months’ time. That means tenants are likely to spend considerably more by next year to rent a given property.

Although Canary Wharf has traditionally had a ‘less going on’ reputation, over the last few years it has transformed into a place that offers a fantastic lifestyle that’s competitive with the likes of Clapham, Fulham, Islington and Shoreditch. The plethora of retail, restaurant and nightlife offerings across this fast-growing district means it’s a real option for young professional sharers to call home.

A two-bedroom property in a desirable building, with a high specification and unrivalled amenities included, such as a gym, concierge, residents’ bars and sometimes a swimming pool and car parking, commands anywhere from £1700 per month to upwards of £3000 for the most sought-after developments, so sharers can expect to achieve a fantastic home for their money with around a £1000 per month budget each.

For example, we’re currently marketing a brand new two-bedroom apartment on London City Island for £2000 per month, with two bathrooms (one en suite), a private terrace, an unrivalled level of finish and amenities such as an outdoor heated pool, gym and 24 hour concierge all included.

Meanwhile, three-bedroom flats and houses start at around £2000 per month, such as a recently let, brand new property in the highly regarded Greenwich Collection Development, or a brand new home in Stratford right by one of the world’s largest and most exclusive retail malls, Westfield. The sky is the limit with penthouses such as in New Providence Wharf letting for around £5000 per month, featuring its own private rooftop swimming pool and sauna. Sharers certainly have a considerable amount of choice at all points in the market and the developments around East and South East London and Docklands are all built to specification specifically with sharers in mind.

It’s important that tenants realise the shortage of supply and rapidly growing demand for properties, particularly in and around Canary Wharf. We rent around a fifth of all our available properties without a viewing even taking place, because an applicant knows the development, can refer to the photos and floorplan of the individual property, and knows that they will have to pay the full asking price (or more!) anyway. The most proactive tenants register with reputable agencies who specialise in their preferred search area, and we hold relationships with tenants for several years because they know we will present the most relevant, high quality properties to them first.

New developments can be more complex in the ways in which they are regulated – for example, the aforementioned new development in Stratford does not allow students given its proximity to Unite Student Halls. It’s common for entire buildings to stipulate that pets are not allowed and, depending on the landlord’s mortgage, there may be a limit to the number of sharers that are permitted to live in a property if they are not a single family unit. A good agent will always be proactive in checking the profile of a prospective tenant before introducing them to relevant properties, but it’s important to understand that there is more to finding the right property for you than just appreciating professional photos on Rightmove listings!

Not all developments are created equally so it’s worthwhile looking around several to compare the amenities and the quality on offer, at different price levels, and understand your needs and preferences first. In the majority of new developments, each property is specified to a superb standard and so trivial issues, like the pressure of the shower water or the amount of storage on offer, aren’t so prevalent.
04/09/18

Latest Canary Wharf rental market advice for professional sharers

by Tom Crowe
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