The real estate rental market in prime central London, specifically in The Royal Borough of Kensington and Chelsea, has experienced significant changes over the past few years. In 2020, the market experienced a slowdown due to the Covid-19 pandemic, but as the UK vaccination program progressed, the market started to show signs of recovery, with rental prices rising and demand increasing.
According to recent reports, there has been a surge in demand for rental properties in prime central London, especially in the Royal Borough. This can be attributed to several factors, including the fact that more people are choosing to rent rather than buy, as well as the influx of international students and expats who are looking for high-end rental properties in the area.
At the same time, the supply of rental properties in prime central London has decreased, with many landlords choosing to sell their properties due to the pandemic-induced economic uncertainty. This has resulted in a shortage of available rental properties, which has pushed up rental prices, making it an excellent time for investors to enter the market.
Investors can increase their potential returns in the prime central London rental market by buying properties that are in need of renovation. By purchasing a property that requires refurbishment, investors may be able to acquire it at a lower price than a fully renovated property, which can increase the potential return on investment.
Once the property has been refurbished, it is likely to attract higher rental rates, as tenants will be willing to pay more for a modern and well-maintained property in a desirable location. This means that not only can the value of the property increase significantly, but the rental yield can also increase, providing a strong return on investment.
The key to success in this market is to purchase a property in a prime location that is in high demand, which can ensure a steady stream of tenants and rental income.
At Fractal we assist you throughout your investment journey by identifying properties with great renovation potential, setting up efficient structures to hold the investment; handling design, renovation and furnishing and managing the property to ensure investors receive the highest possible yield for the investment.
Reach out to a Fractal expert to learn more here about our offering and services.