Record half year performance from Chestertons’ Lettings division

July 30, 2018

Chestertons has today announced record lettings results for the first half of 2018, as growth in market share and increased productivity helped boost profits by 62% against the same point last year.

Despite the number of available rental properties being 10% lower than 2017, consistent with reduced supply across the lettings market, demand from tenants has risen 30% year on year and Chestertons has managed to convert much of this demand into deals, completing 9% more than last year.

The two main reasons for the drop in available rental properties, are the series of recent tax changes affecting landlords (the tapering of tax relief on finance-related costs and the stamp duty surcharge), and the fact that more tenants are now choosing to extend their contract rather than move. To illustrate this, Chestertons has seen a 9% increase in the number of tenants renewing existing tenancies, meaning fewer rental properties coming back to the market.

Commenting on the impact on rents, Richard Davies, Head of Lettings at Chestertons, says: “Over the last quarter, we have seen rent levels start to stabilise and, in some areas, increase. Given the scarcity of available properties in some areas, we could see rents start to rise again over the next few months which, taking into account the fall in capital values, could lead to attractive yields for landlords coming into the market.”

The gross yields currently reported by Chestertons branch network range from 2% in Knightsbridge & Belgravia to 4.7% in Canary Wharf.

Davies concludes, “Despite wider market challenges, I’m pleased to report such a positive first half to the year which demonstrates Chestertons’ growing market share across its London trading postcodes.”

Shared by: Helen Evison – Helen@theinhouseway.co.uk

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website. As an Amazon Associate, I earn from qualifying purchases.

You May Also Enjoy

Estate Agent Talk

The summer improvements that could add value to your house

The latest research from Yopa has revealed which summer-inspired home improvements could add the most value to your property once the cost of carrying out the work itself has been taken into account, with a summer house potentially boosting the value of the average UK home by almost £8,000. Yopa analysed a range of popular…
Read More →
AI in estate agency letting agency property
Estate Agent Talk

Turning anxiety into advantage: how SMEs can make AI work for them

By Johann Aguirre, founder of Cachi AI   According to the Office for National Statistics, AI adoption among UK businesses has risen from approximately 12% to around 35% since late 2023. However, adoption levels differ considerably depending on the size of a business and the sector in which it operates. Larger, established organisations may be…
Read More →
Estate Agent Talk

Home gym can add more than £24,500 to the value of a new-build home

The latest research from UK Property Development has revealed which sought-after features can add the most value to a new-build home, with dedicated wellness spaces and premium interior finishes commanding the largest price boosts. The research analysed the estimated potential uplift in value associated with some of today’s most desirable new-build features, applying each uplift to…
Read More →
Breaking News

Beachfront homes command £1.4m as Britain’s love affair with the seaside endures

The latest research from LandSale, the property portal dedicated to land and rural property, has found that beachfront homes continue to command a substantial premium across Great Britain, with the typical property carrying a £1.395m asking price, more than five times the average British house price. LandSale analysed its own internal market data for beachfront…
Read More →
Estate Agent Talk

Four to five houses is the sweet spot for first-time buyers

House hunting before the stress kicks in Just 20% of us feel excited on a first property viewing, rising to 47% by viewings 4 to 5 There’s a U shape trajectory of excitement when it comes to the viewing process However, there is a gradual rise in stress levels the more properties viewed Overall just…
Read More →
Estate Agents should not all look the same
Letting Agent Talk

Opinion: Why Letting Agents Are The Cape-Wearing Heroes Landlords Need 

By Sally Lawson | Agent Rainmaker Let’s be honest – no landlords signed up to become compliance officers, legal experts, or legislative gurus. They signed up to invest in property. And yet, the weight of the regulatory obligation that’s landed on their shoulders has never been heavier.  And that’s even before the Renters’ Rights Act…
Read More →