Post-pandemic demand for rental homes has rebounded across the three villages, with high levels of enquiries coming through the Finlay Brewer doors. However, a lack of good quality homes to rent continues to provide a challenge to prospective tenants, whilst leading to a sharp increase in rental values.

Jon Bird, Head of Lettings at Finlay Brewer commented: “Demand in the rental market is strong, but the real driving force behind the robust market conditions is the levels of stock, which continues to be at their lowest in years. The disparity between supply and demand is leading to higher rental prices, but with the higher prices comes the expectation of higher quality properties. The demand for modernised homes seems to be particularly strong - contemporary lifestyle demands have been irrevocably shifted by the pandemic as people are now more inclined to spend more time in the  home and less at work.

“We’re now at a point where we are advising landlords to renovate homes that would benefit from an upgrade, if they want to benefit from these strong market conditions and achieve the best possible rental values. Understandably, the cost of works can be an issue, but the benefit will pay dividends in the long-term.”

Data tracking the performance of the lettings market is revealing an interesting trend, with recently refurbished properties achieving far greater returns compared to similar unmodernised homes. In some cases, these returns can be up to double the price achieved pre-refurb.

For example, a three-bedroom refurbished property on Westwick Gardens recently achieved a 40.27% increase in rental value compared to pre-refurbishment in 2019. Proving not just to be a case of value appreciation over time, a comparable home close by in Johnson Mansions, which is unmodernised, saw a 25% rise since 2019. Proving not to be one-off, similar returns were achieved at a three-bedroom home on Brook Green, with a 40.04% uptick in the rental price secured, following an extensive upgrade to the interiors.

The modernisation works conducted are also having a significant impact on the sales values of the homes, with recent data from LonRes revealing that sales values for a refurbished two-bedroom apartment is up 8.99% since 2021, with three-bedroom property values up by 24.30% in the same period.

From a flat sales perspective, and despite the current political and economic uncertainty that has engulfed the country, we continue to encounter motivated buyers in our prime patch of West London. Interestingly, we have seen increased enquiries from purchasers requesting a lettings valuation of properties that have piqued their interest – possibly with a view to letting the property should interest rates continue to rise and subsequently challenge their ability to pay these increased rates. They are aware of the somewhat precariousness of the mortgage/interest rate situation and are thinking ahead whilst still wanting to get on the property ladder.