Press Release: London lettings market favours landlords as rents soar
Wednesday, 29 September 2010
The lettings market has swung dramatically in favour of landlords as an average six applicants chase every available property in London.
This is a dramatic rise from eighteen months ago. In April 2009, fewer than two applicants were looking for every property on the books of London estate agent Marsh & Parsons.
The situation is worse for tenants in particularly sought after areas of South London, including Clapham, Barnes, and Battersea. The ratio has risen from 2.5 potential tenants to over 12 in the last 18 months.
CHART 1: Marsh & Parsons Market Monitor
As a result, prices for lets have soared and landlords have started giving statutory notice to tenants in order to re-let the property and charge higher rents. Likewise, where landlords choose to avoid vacancy periods, our renewals department are re-agreeing lets around 3% higher than the existing agreement.
Patrick Littlemore, Director of south west lettings at Marsh & Parsons, said: "This is the peak of the year for activity with the start of the school year and the university year about to begin. The milk round, when employers seek graduates, is over and there is an influx of young foreign graduates coming into London which is helping to drive demand.
"Anyone who signed a tenancy agreement twelve months ago might have got a good deal at the time - but they may face having notice served on them by landlords who are keen to earn a higher rent."
Case studies:
• 12 months ago a two bed flat in South Kensington’s Onslow Gardens went for £610 per week and has just been re-let for £700.
• A family sized house on the Moore Park Estate near Fulham Broadway with an asking price close to £1,500 per week had three competing offers within 48 hours, letting close to the asking price.
Patrick Littlemore adds: "This is not a simple seasonal change. This time last year, there were only 3.5 times as many applicants than the number of available properties. Last year the supply was better than it is now and I expect this situation to last right up to Christmas. And the fierce competition for lettings property means the good times have returned for landlords – rents are the highest they’ve been for nearly two years."
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For further information please contact:
The Wriglesworth Consultancy Neil Mackwood 079 0055 4702 / 0207 427 1434
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.
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