Knight Frank’s Hampstead Lettings team continues to have an extremely successful year. Lettings Manager Greg Bennett answers the important questions on the Hampstead market, including what type of tenants are attracted to the area, what properties are most in demand, and how he expects the market to perform in the next six months. http://www.knightfrank.co.uk/contact/hampstead-estate-agents/lettings/

1. SNAPSHOT WINTER 2011
RESIDENTIAL RESEARCH
hampstead Lettings
Knight Frank’s Hampstead Lettings team continues to have an
extremely successful year. Lettings Manager Greg Bennett answers
the important questions on the Hampstead market, including what
type of tenants are attracted to the area, what properties are most
in demand, and how he expects the market to perform in the next
six months.
Have you noticed a difference in
activity compared to 12 months ago?
How has your market performed
this year?
Demand has been high all year and continues
to be so as we move into winter, which is very
encouraging. The majority of enquiries are for
properties priced below £750 per week, but we
have also let seven properties above £2,500
per week this year, indicating strong demand
across the board. The market is still suffering
from a supply shortage – the number of
properties available in NW3 now is down 26%
compared to 12 months ago.
What type of properties are
tenants demanding?
The vast majority of our enquiries are for
one and two-bedroom apartments priced up to
£550 per week, and within walking distance of
the underground station. If priced correctly, this
type of property will rent very quickly.
What type of tenants are attracted
to the area and why?
Hampstead is popular with a variety of tenants,
from single professionals and couples to
families. Hampstead Village’s unique feel,
with its quintessentially English cobbled
streets, lively café culture, fantastic recreation
at Hampstead Heath, and great schools, all
contribute to making our NW postcodes
highly desirable.
Figure 1
What do our applicants want to spend?
New applicants, past 12 months
How do you see the market
performing over the next six
months?
The supply shortage in the sales market,
combined with global financial market
uncertainty and stricter lending criteria, should
mean that renting will become an even more
popular solution for people in the Capital and
I predict rents will continue to rise on the back
of this demand.
“
under £350
£350 to £500
£500 to £750
£750 to £1,000
£1,000 to £1,500
£1,500+
10%
32%
18%
10%
11%
19%
Figure 2
What is coming to market?
demand has
been high
all year and
continues to
be as we move
into winter.
“
hampstead office
In line with what would be expected in an
extremely buoyant lettings market, we are having
a record year at Knight Frank in Hampstead
and have agreed 18% more deals to the end of
October compared with a year ago. In turn, this
has put pressure on supply as the market requires
more properties to become available to meet
continued high demand. New tenant registrations
and viewings are up 9% and 14% respectively
and the average agreed rental price is up 6.8%.
Hampstead lettings market
at a glance
Greg Bennett
Head of Hampstead Lettings
+44 (0)20 7431 8686
greg.bennett@knightfrank.com
New instructions, past 12 months
under £350
£350 to £500
£500 to £700
£750 to £1,000
£1,000 to £1,500
over £1,500
8%
18%
18%
15%
15%
26%

2. SNAPSHOT WINTER 2011
RESIDENTIAL RESEARCH
hampstead Lettings
Charting the Hampstead lettings market
Figure 3
Figure 5
Tenants, past 12 months
Year-on-year change (three months to October 2011)
Market activity
Nationality of our tenants?
UK
USA
French
Australia, Commonwealth
Greek
Others
50%
25%
4%
3%
3%
15%
Figure 4
Tenancies
5%
New applicants
-11%
New instructions
-31%
Viewings
22%
Prices
0.7%
Figure 6
Return on investment
Market performance
0.05
150
Prime London residential gross yields, past 5 Years
Prime London property (rental prices) vs FTSE 100, past 5 Years
0.04
Prime Central
London
0.03
Prime Outer
London
FTSE 100
120
Prime Central
London
90
Q4
2006
Q1-Q4
2007
Q1-Q4
2008
Q1-Q4
2009
Q1-Q4
2010
Q1-Q3
2011
60
Q4
2006
Prime Outer
London
Q1-Q4
2007
Q1-Q4
2008
Q1-Q4
2009
Q1-Q4
2010
Q1-Q3
2011
Hampstead properties and the Knight Frank team
to let
Brilliant location
let
Newly refurbished
conversion
10 Langland Gardens,
Hampstead
53 Netherhall Gardens,
Hampstead
1
£395pw
Studio Flat
£250pw
to let
Stunning views
let
Splendid period conversion
47 Lancaster Grove,
Belsize Park
6 Bracknell Gardens,
Hampstead
1
£335pw
2
£525pw
to let
Modern apartment
let
Spacious family home
10 Langland Gardens,
Hampstead
47 Lancaster Grove,
Belsize Park
1
£350pw
4
£750pw
Hampstead Lettings
+44 (0)20 7431 8686
hampsteadlettings@knightfrank.com
79-81 Heath Street
London NW3 6UG
www.knightfrank.co.uk/hampstead
Greg Bennett
Head of Hampstead Lettings
Sarah Marson
Negotiator
Scott Joseph
Negotiator
Renata Simcikova
Administrator
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, liam.bailey@knightfrank.com
© Knight Frank LLP 2011 - 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 England with registered number OC305934. Registered office: 55 Baker Street, London, W1U 8AN