Tenants act quickly to snap up good deals

The London lettings market is booming, as rents drop to a realistic level and tenants become confident they are securing the best deals, reports Cluttons, who is recruiting new lettings staff in London to cope with demand.

A surge in the supply of rental properties over recent months led to a softening in rents across the board during July and August. This has resulted in the market balancing, as the price expectations of landlords begin to match those of tenants, causing a surge in new rental agreements. Over 70% of Cluttons agents report an increase in lettings volumes over the last month, and almost all (91%) expect lettings volumes to increase in the capital over the next year as the sales market continues to suffer.

Cluttons was instructed to let a refurbished development of 16 apartments on Manchester Street in Marylebone on behalf of the Portman Estate in August. The landlords had been concerned about the rental market becoming flooded with properties, so decided to price the development realistically to begin with, in an effort to avoid void periods. Consequently, all but one of the studio and one-bedroom apartments successfully let within two weeks of the instruction, ranging in price from £275 - £415 per week, with many being snapped up by European workers on contracts in the city.

Richard Cotton, Divisional Head of Residential Agency at Cluttons, comments:

"Confidence in the market is currently very high, and strong lettings figures are a direct result of landlords facing up to the current rental market value of their properties, which have dipped recently, and adjusting their rents to a more realistic level. I expect lettings volumes to continue to rise over the coming months, as tenants find they are able to secure the property they want at a fair price.

"The London lettings market is offering excellent value for money, and although there are still plenty of tenants making silly offers, demand for rental property remains high and tenants are quick to snap up good deals."