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 advertising content from third parties and affiliations.. 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.

You May Also Enjoy

Letting Agent Talk

Poor Communication becomes Expensive at Scale

The hidden cost of fragmented property management By Adam Hills, Client Services Director, LRG Living Markets A landlord asks for an update on a repair. The property manager asks the contractor, who is waiting for access from the tenant. Meanwhile, the accounts team has received an invoice but cannot tell whether the work is complete.…
Read More →
Estate Agents should not all look the same
Estate Agent Talk

When Estate Agents Decide to Go Solo

Leaving an established estate agency to work independently gives experienced agents more control over fees, client service and working hours. It also brings responsibility for compliance, cash flow and every part of the customer experience. Before handing in your notice, test the idea against realistic sales volumes, local competition and the amount of time you…
Read More →
Estate Agent Talk

What Should Buyers Ask Before Reserving a New Build?

Research from Skipton Building Society has found that 44% of aspiring first time buyers would rather buy a new build than an older property, with just 30% favouring an older build. Modern fittings and appliances were the biggest draw, cited by over half of those who preferred a new build, alongside the promise of lower…
Read More →
Breaking News

The UK cities with the largest property price increases revealed

A new study has unveiled the most challenging UK cities for first-time buyers. Newry leads Northern Ireland’s ranking, with a property price increase of 12.8%, while Hull leads Great Britain’s ranking, recording an increase of 6.6%. The research examined data from HM Land Registry to reveal the cities that have faced the highest property price…
Read More →
Breaking News

The UK’s Most Expensive Property Hotspots Revealed

More than one in three homes sold in Camden last year fetched at least £1 million, making it the UK’s leading million-pound property hotspot in a new study of England and Wales. But despite London’s dominance at the top of the rankings, the research reveals a surprising trend: median sale prices in several expensive London…
Read More →
Breaking News

Lloyds House Price Index – October 2026

House prices in October 2026 were 1.2% lower compared to the same month a year earlier. House prices fall in October as market remains subdued • House prices fell by -0.6% in October, following a -0. 1% decrease in September • The average property price is now £29 6 ,285 , compared to £29 8…
Read More →