Record half year performance from Chestertons’ Lettings division
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
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