Since the start of the year, London has very much been back in vogue with both buyers and there’s now an acute supply and demand imbalance. This has led to competitive bidding on properties and driven up pricing – asking prices have risen 13.8% in Kensington and Chelsea in the last year (April 2021 – April 2022).
This trend is set to continue if more supply doesn’t hit the market in the coming weeks and months. The supply shortage is deterring some would-be sellers from putting their house on the market, with little available and competition for their onward purchase.
We’re seeing strong activity from both the domestic market and overseas buyers now that travel restrictions have eased for many so now really is a good time to sell.
London living is certainly ‘back in fashion’ and we have heard of cases of buyer’s remorse among those who moved out of the city following lockdowns. We are no longer seeing the initial trend of people moving out of London for more space and countryside.
People are back in the office more than they thought they would be, and the conveniences that London provides – the nightlife, theatres and restaurants – are all significant pull factors.
We are working with a number of clients who are planning on upsizing within London as they see themselves living in the capital for many years to come. The pandemic really focused people’s minds on what they want from their space and where they want to live, resulting in higher demand for larger properties with more outside space.
As such, the family house market is where there is most demand and there’s a lot of pressure as you move up through the market – there is little availability and significant competition for houses above £4m. We are sourcing a lot of property off-market in order to meet this demand.
As predicted and mentioned in our video, we are certainly seeing appetite from international buyers again, thanks to it now being easier to travel. We are particularly seeing interest from the Middle East and Asian buyers, although the latter tend to be purchasing “unseen” via video tours with buying agents as there are still travel restrictions throughout Asia.
We are seeing a strong appetite for people wanting to put their money into bricks and mortar, particularly with current volatility in the stock market. The clients we are acting for aren’t necessarily buy-to-let investors, but those either buying a flat for their children, or a pied-a-terre to use when in London, seeing London property as a safe long-term investment. These buyers are very specific about what they want – a well presented property in the best building, preferably on a private garden square.
As the world continues to recover from huge impact of the pandemic, we expect the market to remain strong with good transaction levels, particularly for the house market. We anticipate a return to the more seasonal trends we’re historically used to in the property market, with a quieter July and August as people take full advantage of being able to travel again in the school holidays, and a busy Autumn market again from September.
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Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department.
The following payments may apply when entering an Assured Shorthold Tenancy:
| First month’s rent | In advance |
| Tenancy Deposit | 5 weeks, or 6 weeks if annual rent is over £50,000 |
| Holding Deposit | One week’s rent, put towards your first rent due |
| Early termination when requested by the tenant | A charge not exceeding the financial loss experienced by the landlord |
| Default charge for late payment of rent | A maximum of 3% above Bank of England base rate, charged when rent is more than 14 days late |
| Default charge for replacement of lost key or security device | Equivalent to cost incurred |
| Changing the tenancy documents after the commencement of the tenancy, including change of sharer | £50 incl. VAT |
The following payments may apply when entering a Non-Housing Act Tenancy:
A Non-Housing Act Tenancy is formed when the annual rent exceeds £100,000 or the property is occupied by a Company rather that an individual.
| Inclusive of VAT | |
| Tenancy Setup Fee drafting and execution of tenancy agreement if supplied by us, collecting and holding the Security Deposit as Stakeholder, issuing protection certificates, if applicable, Open Banking type referencing of tenant and initial Right to Rent Checks | £360 |
| Check-in Fee checking into the property and reviewing inventory | minimum of £130 |
| Tenancy Continuation negotiating and drafting an extension | £150 |
| Change of Sharer – Deed of Assignment | £120 |
| Early Termination – Deed of Surrender | £120 |
| Guarantor Referencing Fee (each): | £30 |
| Deed of Guarantee Fee: | £50 |
| Late payment of rent | 3% above the Bank of England base rate |
This guide is for tenants and landlords in the private rented sector to help them understand their rights and responsibilities. This guide includes a checklist and further detail on each stage of the rental process.
Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department for a full breakdown of costs. Here’s a list of what you can typically expect to pay:
| Lettings Service Only: | 10%+VAT (12% inc. VAT) – Including rent collection |
| Letting and Management Service: | 16%+VAT (19.2% inc. VAT) |
| Short Let (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
| Lettings Renewals Service: | 8%+VAT (9.6% inc. VAT) |
| Lettings and Management Renewal: | 14%+VAT (16.8% inc. VAT) |
| Short Let Renewal (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
Additional non-optional fees and charges
We will not be charging clients fees for referencing, tenancy agreements or deposit registration.
The costs of a clean, EPC, gas safety, EICR, PAT and inventory are set by third party suppliers and prices may vary. The below schedule is to give you an idea of what you would typically pay.
All fees stated are inclusive of VAT (calculated at 20%):
During the tenancy (if required
INHOUS is a member of and covered by the ARLA/Propertymark Client Money Protection (CMP) Scheme.
We are also a member of a redress scheme provided by The Property Ombudsman www.tpos.co.uk.