The number of people putting their homes up for rent in London has dropped between 10% and 20% according to London estate agent Marsh & Parsons.  Having seen supply of rented accommodation peak over the summer, the London lettings market is now seeing more usual levels of activity.

The summer months were frantically busy as would-be sellers put their homes up for rent instead of on the market for sale.

Peter Rollings, managing director of Marsh & Parsons said, “The number of properties up for rent in London earlier this year was phenomenal.  Now we’re seeing a return to normality.  The government’s liquidity package is beginning to inject some confidence in the housing market and that means people who were turning to the lettings market while the sales side was stagnant are putting their homes up for sale again.”

Although rents south of the river have remained fairly stable over the past year (particularly in Clapham and Balham), rents in central London have fallen.  In July 2007 the average two-bed flat in Kensington & Chelsea commanded £550 per week.  In July 2008, the same flat would have gone for £450pw – a drop of 18%.  But rents haven’t fallen since the summer - because the supply of properties to let has stabilised, rents are now holding firm across the capital.

Emilie Dawes, lettings director at Marsh & Parsons, said, “Supply levels are returning to normal in London’s rental market.  This summer was highly unusual because so much stock was coming onto our books which put pressure on landlords to offer competitive rents.  But over the past month, we’ve seen supply and demand start to balance – there’s still a lot of property on the market, but it’s coming back in line with the number of people wanting to rent.  We’ve even had some price wars between tenants vying for the same property – competition like this is sure to drive rents up over the coming year.”

 

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For further information please contact:

The Wriglesworth Consultancy
James Staunton / Sarah Davidson   
0207 427 1400

Marsh & Parsons has been part of the London property scene since 1856. The sales and lettings agent has 14 offices situated in prime positions across central, west and south London. They have an intimate and extensive knowledge of the area.

Marsh & Parsons are an independent and professional firm with a 'can-do' attitude covering all aspects of residential property.  They aim to establish individual relationships with clients through a business built on energy, agility, professionalism and knowledge. Their business aim is to be the agent who not only understands the local area around their offices better than any other agent, but also to be at the heart of the community.