spring 2011
Mayfair lettings INSIGHTKnight Frank
Who rents in Mayfair? Will rents keep rising? How can you let
your
property quickly and at the best rent possible? Kate Townrow,
head of
Knight Frank Mayfair lettings answers the important questions on
the
spring market.
Have rents continued to increase in 2011?Despite a quiet winter
in Mayfair with low applicant levels, the shortage of good quality
properties has pushed rents higher across the market. However,
landlords should still be mindful that asking price or close to
asking price lets are only being achieved on newly finished stock.
Typically, we see offers within 5% of the asking price on property
such as this. In general, landlords should be flexible,
particularly with unmodernised properties. The typical Mayfair
tenant profile is international and predominantly corporate, with
expectations to match.
What can Landlords do to ensure their property is let as quickly
as possible?Landlords need to be realistic in their expectations
and listen to their agent, who has the market knowledge of the area
so is well placed to advise on all aspects of the rental process,
from initial market appraisal to offer to subsequent completion of
the let. Landlords need to ensure that a property appeals across as
broad a spectrum as possible. Neutral décor and furnishings always
appeal and let quickly, as do amenities such as parking and
security that go with the property. Mayfair applicants in general
are attracted by light and bright properties finished to a high
standard, which can be anything from a £400 per week pied à terre
to a £15,000 per week penthouse.
How long does it usually take you to let a property?We find in
general that new developments let quickly, within around one week
of marketing. For obvious reasons applicants prefer modern finishes
and as this is atypical of the Mayfair market these flats go
quickly. The more traditional finish still attracts interest, but
landlords must be careful not to price too high and suffer a long
void period unnecessarily.
Why should a Landlord consider using Knight Frank over the
competition?Knight Frank is the leading independent global property
consultancy with 209 offices across 47 countries. With this
coverage, we can attract applicants the world over. Additionally,
our associated offices and global network means we have
unprecedented international reach and many of our clients are
referred to us from internal departments and international
companies. Finally, our in-house Corporate Services team work with
blue chip companies looking to relocate their staff both nationally
and internationally, placing over 80% in central London
locations.
Where do your tenants tend to come from?Tenants in Mayfair are a
varied mix! Over the last year we have successfully rented to
corporate CEOs, students, entrepreneurs and royalty. We pride
ourselves on our quality of service at any level, from £300 per
week to £40,000 per week.
How do you think the market will fare in the coming months?I
believe we will continue to see steady growth in rents, driven by
lack of stock. Asian investors are buying large tranches of
off-plan stock, but much of this has not yet hit the market.
Financing issues for buy-to-let landlords means we will not see
dramatic rises in stock levels until the mid next year. Many people
are choosing to rent as sales stock is limited and funding is still
difficult.
Figure 2
What do our applicants want to spend?New applicants, last 12
months
Figure 3
What is coming to the market?New instructions, last 12
months
Mayfair lettings market at a glance
Figure 1
Market activityLast 3 months, year-on-year change
Change in rents, last 3 months
2.2%
30%
11%26%
17%
17%
Under £350 £350 to £500
£500 to £750 £750 to £1,000
£1,000 to £1,500 Over £1,500
Page 1 of 2
"Over the last
year we have
successfully
rented to
corporate CEOs,
students,
entrepreneurs
and royalty."
31%
8%10%
28%
8%
15%
Under £350 £350 to £500
£500 to £750 £750 to £1,000
£1,000 to £1,500 Over £1,500
Tenancies agreed
Prospective tenants registered
Viewings
-45%
-45%
-55%
Kate TownrowHead of Mayfair lettings+44 (0)20 7647 6600
[email protected]
New property available
13%
http://www.knightfrank.co.uk
spring 2011
Mayfair lettings INSIGHTKnight Frank
Charting the market
Figure 4
Nationality of Knight Frank tenantsPrime Lettings, last 12
months
Figure 5
Prime residential rents, indexedQuarterly, last 5 years (Dec
2005 = 100)
Figure 6
Prime London residential gross yieldsQuarterly, last 5 years
90
100
110
120
130
140
Dec-
06
Jun-
07
Dec-
07
Jun-
08
Dec-
08
Jun-
09
Dec-
09
Jun-
10
Dec-
10
Prime Central London
Prime Outer London
Prime Surrey
0%
1%
2%
3%
4%
5%
6%
Dec-
06
Jun-
07
Dec-
07
Jun-
08
Dec-
08
Jun-
09
Dec-
09
Jun-
10
Dec-
10
World region
Africa
Asia
Australasia
Europe
India
Middle East
North America
Russia & CIS
South America
UK
Tenants
2.0%
4.9%
3.6%
26.5%
1.4%
2.9%
10.7%
2.1%
0.6%
45.3%
Asking rent: £525pw
Refurbished pied à terre
Let
1, 52 Maddox Street
1 bed
Asking rent: £550pw
Contemporary St James's apartment
To Let
Rose and Crown Yard
1 bed
Asking rent: £1,700pw
Modern duplex apartment
Let
2, 27 St George Street
2 bed
Asking rent: £795pw
Fashionably located
To Let
South Molton Street
2 bed
Asking rent: £5,000pw
Impressive Mayfair townhouse
Let
South Street
6 bed
Asking rent: £3,500pw
Stunning penthouse with terrace
To Let
Mount Street
3 bed
Mayfair properties and the Knight Frank team
Kate Townrow
Head of Mayfair Lettings
Karen Hunt
Senior Negotiator
Andrew Green
Negotiator
Kevin
Blakebrough
Property Manager
Anna Boughen
Lettings Administrator
Knight Frank Mayfair Lettings
020 7499 1012
[email protected]
120a Mount Street,
London, W1K 3NN
KnightFrank.co.uk/Lettings
If you have any queries or would like to obtain additional
information on the UK or international housing markets please
contact: Liam Bailey, Head of Residential Research, +44 (0)20 7861
5133, [email protected]
© Knight Frank LLP 2009 - This report is published for general
information only. Although high standards have been used in the
preparation of the information, analysis, views and projections
presented in this report, no legal responsibility can be accepted
by
Knight Frank Residential Research or Knight Frank LLP for any
loss or damage resultant from the contents of this document. As a
general report, this material does not necessarily represent the
view of Knight Frank LLP in relation to particular properties
or
projects. Reproduction of this report in whole or in part is
allowed with proper reference to Knight Frank Residential Research.
Knight Frank LLP is a limited liability partnership registered in
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Baker Street, London, W1U 8AN
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