Mortgage News
London favours landlords as rents soar
The London lettings market has swung sharply in favour of landlords over the last 18 months, as an average of six tenants now chase each available rental property in the capital compared to two in April 2009.
London estate agent Marsh & Parsons said rents have risen sharply as a result, with some landlords now serving statuary notices to tenants in order to re-let the property at a higher price.
The estate agent said that its renewals department was re-agreeing lets for around 3% higher than the existing agreement.
The situation has been exacerbated in particularly popular areas of South London, including Clapham, Barnes and Battersea, where 12 tenants are hunting each property compared to 2.5 tenants just 18 months ago.
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.”
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Littlemore added that it was not just a 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.
“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.”