Rental property activity at record levels

Moneymatchmaker.com has reported that rental property activity across London has increased by 40 per cent compared to the same period last year.

Recent interest rate increases and the increasing cost of housing in areas such as Pimlico, Kensington, Richmond, Islington and Paddington have witnessed extremely high levels of home rental business, when compared to the same period in 2006. Many letting agencies are reporting that tenants who are enquiring who are prepared to commit to securing properties on a let of up to three years with no break clause, as a result of current market conditions and with mortgage rates still unsettled, things are expected to continue at a pace.

Overall rental property demand is up 40% year-on-year across London, with much of the demand coming from families who are relocating in time for the start of the new school year. Potential tenants are requesting three to four bed houses at the £ 1,500-£ 2,000 per week mark where, owing to an upward shift in the rental prices, but demand is currently much higher than the supply available.

Potential property rental tenants are making offers on multiple properties, desperate to secure the best deal. Industry statistics show that offers made are up by 42 per cent year-on-year, and tenancies that are finalised are being agreed at higher rentals than this time last year.

The average rental renewal is up by 4.78 per cent in London this month, with the trend looking set to continue as tenants are forced to stay in rental properties for longer. London's property rental market is showing no signs of abating, with overseas buyers and city bonuses a factor in the continually rising price of property.

A London lettings agent commented saying: “ Despite summer traditionally being the busiest season, August has exceeded even our high expectations. There has been a significant rise in the number of new lettings instructions and appraisals compared to June 2007, with instructions climbing 30 per cent and appraisals up by 15 per cent. With such high demand from applicants willing to commit for long periods, it is a shrewd decision to get into the lettings market, or to freshen up your investment property in order to capitalize on this activity.”

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