2019 Annual market summary from Phillips Harrod

London’s Prime rental market remains strong and next year looks to be even better.

Uncertainty around the UK’s planned departure from the EU and the stability of the government is causing families to rent instead of buying properties in London.

If summer 2019 was anything to go by we are expecting another busy year ahead. “With such major changes in the global political spectrum over the past 12 months, many feared a huge impact on the prime residential market. As London’s leading super prime rental agents we are proud to have worked on some high profile deals in the St John’s Wood area further cementing our profile in the area. “It’s been a challenging period but the corporate rental sector has remained strong given the stability provided by the ex pat community. With the pull of great international schools London and in particular St John’s Wood remains a firm favourite with incoming families” says Phillips Harrod Co-Founder Simon Harrod

Mansion Global recently published an article saying Super-Prime Rentals in London Reached Five-Year High in the Second Quarter 2019. A lack of stock in the sale market is helping sustain rental prices in prime London locations. It’s surely no surprise that in a stressed market, the highly desirable prime property heartlands – Mayfair & St James’s, Knightsbridge & Belgravia and Kensington, Notting Hill & Holland Park – will continue to attract people. As well as retaining their attraction for buyers, lack of stock is playing a particularly powerful role in providing a floor under prices – in these areas there is between 18% and 28% less stock available on the open market compared to 2018. (Stats are according to a recent Coutts survey)

Since April this year – to now, Phillips Harrod have really made a stamp on the super prime market In St. John’s Wood, Regent’s Park and surrounding areas.

Market analysis shows we have completed a sizeable amount of deals giving us a good proportion of the market share for the previous 6 months in the super prime properties rented which have ranged from Regent’s Park stucco houses to ambassadorial detached houses.

 

 

Market analysis has shown that we are the third highest performing agent in the lettings super prime market in London in 2019.

US tenants looking to rent in prime London have greater spending power thanks to the weakening of sterling. It calculates that a renter with a weekly budget of £5,000 has seen this grow to more than £6,000 since the EU referendum in June 2016 (According to a recent report by Knight Frank)
Demand from US tenants has increased in Notting Hill and St John’s Wood thanks largely to the quality of schools in these areas. Philips Harrod successfully rented a highly sought after property on Clarendon Road in Notting Hill to a family looking for a house close to a great school.

 

 

Phillips Harrod Co-Founder Adam Phillips closes this years report by adding “With the markets vulnerability and uncertainty I think more than ever landlords and tenants need to feel supported with their decisions which is where us as some of the most long standing independent agents in the area are of a real comfort giving the appropriate guidance, we feel this in the conversations we have and in particular the referrals that existing clients and tenants provide us with”

PHILLIPS HARROD HIGH END PRIME RENTALS

Phillips Harrod adjust to the rental market change since brexit and still remain at the forefront of high end luxury rentals in Londons most sought after areas.

View some of our properties

Phillips Harrod offer 2 exclusive properties on London’s Famous Hamilton Terrace

Phillips Harrod are sole agent for a magnificent 5 bedroom Georgian House in the London’s highly sort after Hamilton Terrace, St John’s Wood. We are also joint sole agents for a Grade II listed Georgian House on the same street. Appearing in June edition of Fabric Magazine. For full info please click on link below

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Support A Great Cause and Phillips Harrod Director, Simon, in his London Marathon Charity Challenge

On the 23rd April 2017, Simon Harrod will be swapping his suit for running shorts as he completes the iconic Virgin London Marathon. The famous course runs over a distance of 26 miles and 385 yards throughout the finest sights of London and is considered one of the top six marathons in the world.

While many of us would quake in fear of the blisters, burns and muscle soreness, Simon is putting himself through the paces as he raises money for the wonderful and well-deserving charity; Rays of Sunshine Children’s Charity.

Rays of Sunshine work hard to make the wishes of seriously ill children in the UK to become true. From personal wishes for children to a treat for a whole hospital ward, Rays of Sunshine host a wide range of events such as large outings, concerts and all sorts of magical wishes as they believe every child deserves a precious memory to cherish.

As wishes are as individual as the child themselves, all donations, whether big or small, can really help to make a difference. By sponsoring Simon’s epic plight, you can support Rays of Sunshine’s work to grant their 6,000th wish and many more afterwards. With over 49,000 children living in the UK with a serious of life-limiting illness, your donation and Simon’s efforts can make all the difference to making more children’s dreams come true.

Sponsoring is easy, and you donate to Simon’s marathon challenge by following this link: http://www.justgiving.com/owner-email/pleasesponsor/Simon-Harrod

We wish Simon all the best for the London Marathon and know that the difference he’s making to the charity will keep him fighting all the way to finish line.

Good Luck Simon!

Phillips Harrod Win The Prestigious YN Residential Estate Agent of The Year Award

The 11th annual YN Property Awards Dinner 2017 took place in February at the prestigious Lancaster London Hotel, that truly hosts the best and most beautiful views of the capital city. The esteemed event is now a long-standing institution and is considered one of the finest and leading events in the property industry calendar.

The purpose of YN Property Awards is to recognise talented young property professionals and celebrate the brightest young minds in the industry. Each awards ceremony celebrates the achievements of property professionals aged 21-35 and highlights the rising stars and key talent in the industry.

This year’s event was the 11th annual award ceremony that has truly got bigger and better as time has progressed. The dinner has gone from strength to strength attracting hundreds of guests, many sponsors and prestigious, high-profile speakers. The event is not only seen as a way to celebrate achievements in the industry but is also a great networking opportunity for guests from a wide range of backgrounds and different property sectors.

The YN Property Award are an excellent way to make valuable new contacts and to discuss the latest trends in the industry; this year the topics of discussion included; Brexit, overseas investment and the appeal of London to buyers thanks to speeches by industry greats; David Marks and Ian Marcus.

Judged by a panel of leading industry experts, the award nominations are taken very seriously, and Phillips Harrod were delighted when Adam Phillips and Simon Harrod won the award for the YN Estate Agent of the Year. This award recognises the many remarkable achievements Phillips Harrod has accomplished such as managing over 50 deals of rentals over £1,000 per week as well as notable deals of £10,000 per week, £9,000 per week and £7,000 per week. In fact, thanks to hard work put in by Simon and Adam, they have seen the company turnover double in just one year. With such staggering achievements in mind, the award has truly cemented the success of Phillips Harrod and their contribution to the property industry.

As well as celebrating the achievements in the property sector, the awards dinner also raised vital funds for Norwood charity. The event raised over £170,000 for the UK’s largest Jewish children’s, family and learning disability charity. With over 500 guests involved, fascinating guest speakers as well as comedian, Ian Royce, adding humour and fun to the event, it was truly a roaring success for, not only the winners but all who were involved.

Tax Rises For Landlords Means Tenants Could Face 30% Rent Increase

Decisions made by the former chancellor in the 2015 Summer Budget are coming into effect in April this year which could see landlords struggle to make a profit. As the new tax changes could see landlords struggle, it is likely that tenants will have to foot the bill and that we will see up to a 30% rent increase across the market.

The former chancellor, George Osbourne created mortgage interest tax relief reforms, that means that come April 2017, landlords will not be able to deduct all of their mortgage interest when they work out their profits. It is predicted that this change will force up to two million landlords in the UK up to the next tax bracket.

The new changes were designed to make it easier for first-time buyers to enter the property market. This seems incredulous by some economists as increasing rent will make it harder for first-time buyers to save for their investment and will make it more challenging for young people to find a place to live as these changes will squeeze the supply of rental property. In fact, a recent ARLA survey suggests that in light of these new changes, 58% of landlords are considering reducing their investment in rental properties and 66% of landlords predict that the tax changes will mean there is pressure to increase rent prices.

With numerous experts predicting an adverse impact on landlords and the private rental sector, there has been increasing resistance against the Government for going ahead with these proposed changes. In fact, a Professor of Financial Economics, David Miles, predicts that rents would have to rise between 20% and 30% to offset the government impact. This is not only making life difficult for tenants struggling to afford the fees, but for landlords who may struggle to rent out their property.

With this potentially damaging situation occurring imminently, there is increasing pressure from many committees to halt the Government in this controversial decision. The Residential Landlords Association (RLA) believe there is much more that the Government can do to help landlords.

It has been found that thanks to the extra revenue raised in surcharge stamp duty, among other cost savings, that the Government has raised £1.19 billion in tax, which is £560 million more than predicted. As some of this revenue was formed from stamp duty, the RLA and many other organisations believe that this sum should be used to give landlords a break and support the rental market.

As the time is nearing ever closer, changing the reform process is now considered a matter of urgency to protect the rental market, support first-time buyers and not let the already limited number of properties available become affected.

Apprentice 2016

The Apprentice contestants will be put through their paces in a series of tough tasks designed to test their business acumen. But when they’re not trying to impress Lord Alan Sugar in the boardroom, the 18 candidates will
be relaxing in style in a lavish £12 million London mansion. Sir Alan Sugar has spared no expense to provide the candidates with a luxurious property, which can be rented for almost £40,000 a month. Situated in
leafy Hampstead¹s most sought-after streets, the plush pad boasts six bedrooms, six bathrooms and five roomy reception rooms set over four floors. The plush property is available to rent via Phillips Harrod, but
prospective tenants will need to have deep pockets with the monthly rental figure coming in at £38,783 ­ or a whopping £8,950 every week. The contestants will be living in the height of luxury, with hardwood floors,
marble baths and period features running throughout the property. A home cinema room and a Jacuzzi are also at their disposal to help the candidates unwind after a stressful day.The full Daily Mail article can be
read here, Inside £12 Million luxury Apprentice mansion
http://www.dailymail.co.uk/tvshowbiz/article-3824310/PICTURED-Inside-12-mi llion-luxury-Apprentice-mansion.html

HOW DO EU FEEL ABOUT BREXIT?

We caught up with Super Prime Rental Experts Phillips Harrod to find how the central and North West London high end of the market has been impacted. Director Adam Phillips comments that ³on the morning after the vote we had two deals under offer (one at £3450pw and one at £2950pw) that started to wobble following the result. Within a few days of reassurance and guidance both deals were signed and the tenants moved in. I would say that this activity albeit only over a few days was indicative of how the market has reacted over the past few months. A little uncertain but essentially life moves on. We live in an uncertain world, who knows what the future holds but for now we¹re busy with enquires and will continue to service our clients and the demands of the market.² Adam Phillips Simon Harrod. Some of our other tenancies that have begun post Brexit: London Road, St John¹s Wood NW8, Asking £4400 per week St John¹s Wood Road, NW8, Asking £4950 per week. Clifton Hill, St John¹s Wood NW8, Asking £3450 per week Prince Albert
Road, Regents Park NW1, Asking £3500 per week. Please click here to download a PDF copy of the article.

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New Kids on the Block

In company terms Phillips Harrod were the new kids on the block during 2015, but with their vast previous experience and extensive connections,the company is quickly becoming a household name in the top end of the market with two of the market¹s leading agents joining forces. For full info please click on link below

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Breaking New Ground

It¹s been an exciting journey for Phillips Harrod in 2015, see our exclusive interview in August¹s edition of Vantage Magazine. For full info please Click Here

https://phillipsharrod.com/uploads/2015/08/VAN-AUG-15-PROPERTY-P
HILLIPS-HARROD-2.pdf