The housing market continues to slow as the number of homes hitting the market has hit a new low, according to the Royal Institution of Chartered Surveyors (Rics).
On average, Estate Agents have just 42 unsold properties on their books, 13% of respondents reported. Even new buyer inquires and sales remaining low in March.
Simon Rubinsohn, Rics’ chief economist, said: “High-end sale properties in Central London remain under pressure, while the wider residential market continues to be underpinned by a lack of stock. This includes rents, with rents away from the capital generally moving higher as demand outstrips supply.
“For the time being it is hard to see any major impetus for change in the market, something also being reflected in the flat trend in transaction levels.”
This has not stopped some student digs in London capital from seeing huge rental fees. The city’s wealthiest undergraduate students are paying almost £67,000 a year to live in these luxury apartments in Mayfair, one of the city’s most expensive areas.
Costing £1,300 per week per person, the fully-furnished apartments are truly luxurious.
They boast two connecting reception rooms with living and dining space as well as a guest cloakroom.
They also have a high-tech home automation system that allows you to control lighting, security, underfloor heating, air-conditioning, and a media and audio visual system from your mobile phone.
According to StudentTenant.com, students living in London can receive a maximum loan of £11,002 per year, which shows just how staggering these prices are.
Managing director Danielle Cullen said that of the half a million students living in private rental accommodation in the UK, nearly half come from overseas, meaning it’s not surprising there’s a growing demand for luxury apartments.
“We have seen a huge growth in luxury accommodation in recent years, designed to appeal to the wealthiest students across the globe who are willing to pay rent upfront,” she said. “It’s great to see property developers offer the option to live the life of luxury for those who are studying at university, but the problem we’re seeing is that luxury properties are gradually pushing up rental prices for students across the UK.”
“Landlords are seeing the potential for luxury student properties and how much rental income they’re generating, and they want a piece of it. More and more landlords are opting for the luxury label and student pockets are getting hit as we’re seeing a fall in affordable student accommodation, particularly in central London.”
DMZ is shocked but not surprised to see what some people will look to spend on a good location in central London. The property market may be slow at the moment, but as seen by the astronomical rent prices that can be charged, there will always be a solid market in London!
Want to know the story behind Britain's latest property mogul? Why a company is going bust? Our coverage goes beyond run-of-the-mill news on key real estate issues.
Our subscribers are made up of the most influential Founders and CEO's in UK property. Gain a competitive edge and get informed - read what they read.
Understand exactly what the most senior figures in UK property are thinking. Exclusive opinion articles from powerful real estate influencers that move markets.