WestSide - October 2009
Strong demand for longer tenancies
Given the increasing amount of complex legislation, lettings staff need training to understand the various types of tenancy available. By Susan Fitz-Gibbon.
At Fitz-Gibbon, we invest heavily in staff training and as we enter the last quarter, two and three year tenancies are becoming more commonplace as families seek added security in uncertain times. Many need to budget ahead and know where they stand financially whereas others are open to rental increases in line with the RPI.
We've also received multiple requests from tenants wanting tenancy agreements without a break clause. Given our proximity to the German school in Richmond, this has been particularly true for German families whose children will be attending the school for a number of years. This is good news for many landlords but requires careful consideration by both parties. Indeed, we've recently let a four bedroom house on the Vineyard for a full year with all rent paid in advance. The Letting Division in our St Margarets office has now been up and running for a year and Senior negotiator, Katie White, reports increasing demand in both St Margarets and the surrounding areas so our office footprint has increased to cover Twickenham, Teddington and Whitton. The business is growing due to new and corporate business, the relaxed availability of investment funding and reduced sales prices as investors are acquiring properties again. Four years after our rebrand we're currently in the process of refurbishing all of our offices, including knocking through the Richmond Office to create more desks for staff. In fact, 2009 has been our most profitable year in twelve years thanks to our solid reputation and valued clients. Demand for Property Management services in these areas is strong and we are nearing completion on an £80,000 refurbishment in Holland road, W14. Meanwhile Vanessa Reast, our Chiswick Office Manager, reports a buoyant autumn market and sustained demand for our property management services. In W4, we have recently completed a £13,000 refurbishment in Riverview Grove.
In the current market, reasonably priced and well presented properties are generating a lot of interest and even attracting multiple offers so property stock levels have reduced compared to the levels seen three months ago. The lettings market around Chiswick and Richmond remains solid and rental yields have increased upwards of 10% in the past two years. A typical flat worth £400,000 with a 5.2% yield in 2007 would give a yield of 5.7% in today's market because although the capital value may have dropped to £325,000 rental prices remain the same or higher.
In Richmond, Assistant Manager Louise Smith has highlighted the need for an increased supply of family homes as our stock levels have depleted following the traditional rush for four, five and six bedroom properties before the start of the autumn term. One bedroom properties are currently achieving between £220 and £288 per week, two bedroom properties are valued between £277 and £460 per week and family homes start at £690 per week for a three or four bedroom property and £1,150 for a five or six bedroom house. We're looking forward to a busy market in the run-up to Christmas!
Contact Louise Smith for Richmond and the surrounding areas on 020 8940 9920 lsmith@fitzgibbon.co.uk
Vanessa Reast for Chiswick and the surrounding areas on 020 8995 3335, vreast@fitzgibon.co.uk
Katie White for St Margarets and the surrounding areas 020 8892 8921, kwhite@fitzgibbon.co.uk
Aimee Bruce for Kensington, Fulham and the surrounding areas 020 8892 8921, abruce@fitzgibbon.co.uk