Now, this is a very pertinent question and we know that it’s one that many landlords, and indeed agents, will be asking themselves right now.
And. Brace yourself. The answer is very simple: yes.
But. There’s a little more to it.
E14, and by that we mean all of the areas which form the postcode – the Isle of Dogs, Limehouse, South Quay, Canary Wharf (although there aren’t actually any residential developments in the business district), Poplar, Blackwall, East India, Blackwall & Leamouth – is witnessing residential development on an unprecedented scale. This year alone, London City Island, Charrington (Providence)Tower and Horizons Tower have all completed resulting in, literally, hundreds of new apartments to rent in E14.
Trouble is, those three developments all completed within a matter of months of each other and therefore all of the new rental stock came at the same time. And whilst we have strong demand for rental property in E14 the timing of those completions have had an effect on prices.
Unlike some letting agents we’re not scared to say how it is, and the reality is that rental prices in E14 have eased by 5-10% over the last 12 months.
The rental property market is a very simple thing (although some will have it that its actually very complex… which is perhaps more of a reflection of their egos), and is based on those two towers of Western world consumerism: Supply & Demand.
Quite simply (because it really is simple) demand is strong, but supply is (right now) too high. Something therefore has to give, and what gives is actually two things.
1. Prices fall
2. It takes longer to find a tenant, so void periods are up
So, what’s going to happen?
The answer to that is simple too.
Over time, and we’re talking a couple of months, maybe three, tenants will take up the slack – the excess properties – and we’ll be back to a more balanced state and rents in E14 will stabilise.
However, the quality of developments in E14 is now higher than it was previously. Everything seems to have a gym, a 24 hour concierge, valet parking even, so undoubtedly those older developments without facilities are going to struggle a bit, unless of course the landlords are realistic on asking prices for rent, and, brace yourself, really focus on making their property as clean, tidy and welcoming as possible.
So, yes, its tough out there right now.
