Demand for rental properties in South London is on the up with Townends estate agents, part of the Badger Holdings Group, recording a 17% year on year rise in applicants.
Townends say that South London, in comparison to West London and Surrey where Townends also operate, has seen the greatest increase in applicant numbers. Caroline Kavanagh, Managing Director of Townends Lettings & Management says “More and more people have reached a point where if buying is not an option, yet they need somewhere to live, then they have to take the rental route.
However, applicants are increasingly budget conscious, which has been echoed in reports suggesting individuals currently have less disposable income than any other time since 2003, and therefore are more willing to move further afield in order to stick to what they can afford.”
By example, in Streatham, new applicants are thought to have migrated from neighbouring Brixton, Balham and Clapham, where they are currently being priced out of the market , bringing a noticeable difference in the quantity and demographic of applicants looking to live within the prime Streatham Hill grid.
As demand has increased, a shortage of rental properties in many popular south London areas has also meant applicants have had to widen the net in their search to give them the best chance of finding a preferred property. In Croydon demand for purpose built modern apartments remains highly sought after by young professionals looking for more affordable rent but easy access into London.
In areas such as Streatham, prime one and two bedroom Victorian garden apartments are in shortest supply, letting for between £1000 and £1400 pcm respectively.
Caroline comments “Although rents in some south London areas have risen in line with increased demand, tenants are still able to get greater value for money than the same property half a mile away which is likely to cost in excess of £200 a month more”
Further west in Surrey, applicant levels have remained similar to last year. “It’s possible this reflects a rise in the number of young people staying at home for longer or deciding to live with family in order to save, as well as receiving greater family support financially to get a foot onto the property ladder” concludes Caroline.