This week reports hit the wire chronicling the story of how one flat in Mayfair was rented out in a record-breaking 40 minutes. This has prompted Simon Morris to ask; how hard is it to invest in Mayfair’s residential property sector?
The hottest residential property market in the UK
As a London-based property expert who shows UK property investment funds how they can maximise revenue on their property portfolios, Simon Morris understands why prime central London is the hottest residential property market in the UK.
The UK capital is a world leader in several profitable sectors, including the finance industry. It’s a highly desirable place to live and its property market has boomed in light of the economic recovery. If you invest in London residential property wisely it can prove incredibly lucrative, yet prime central London is easily the most profitable area of the global financial capital in terms of both residential and commercial property.
Flat in Mayfair sells in 40 minutes
New reports have shown just how profitable the residential sector is. According to Metro a flat in Mayfair was recently rented out in 40 minutes by tenants who paid £10,000 up front. It had been put onto the rental market by letting agents E J Harris for an exorbitant £1,560 per month.
Demand for the flat, which has been described by various news outlets as “small,” was fierce. Within 15 minutes of uploading it to the website and putting out an alert, the agents received over 200 emails and phone calls concerning the property. 15 minutes later they had five serious offers and ten minutes later it had been rented out. This is the story across the Mayfair residential market.
An “extraordinary” deal
The deal was labelled “extraordinary” by the managing director of E J Harris, Elizabeth Harris. She commented: “If it was a swanky flat in Mayfair’s posh Western district I would expect it to fly out of the door, but this is an “ordinary Londoner” apartment on the eastern Soho border by Regent Street.
“The speed of this deal and the battle to secure the tenancy is the clearest indicator yet to me how buoyant and hot London’s letting market is at present.” In other words, demand is so high that it’s difficult to secure property in the Mayfair residential property market.
Hard to enter Mayfair property market
What does this mean for UK investment funds and others looking to invest in the Mayfair residential market? Yes it’s profitable but it can prove a hard market to enter. Funds may want to consider widening their net if they wish to profit from the UK capital’s booming residential property market.