With five people still fighting for every one property available to rent in London, the annual rent increase is 24 per cent, reports Virginia Skilbeck from Douglas & Gordon.

“Foreign property owners have fallen prey to the ‘accidental landlord syndrome’ (a landlord who can’t sell and ends up renting) due to changes in currency, proposed reviews of non-dom taxation, and increased capital gains tax,” she suggests.

Skilbeck also notes that the average increase in rental renewals was 5.25 per cent in June. “Some larger properties that had significant rent drops last year increased by between 15 and 20 per cent in June this year.”

Andrew Clements of Savills Wimbledon says that although there aren’t a huge number of properties available, applicants are looking in much wider areas than before. It is not unusual to speak to a relocation agent whose client is looking in Wimbledon, Putney, Richmond and Barnes. This makes everything more competitive and often Wimbledon – especially the Village – is the most expensive of the areas, so it misses out.”

Clements adds there is still interest in top-end flats, but not the same desire for houses at the same level. “There are a number of properties available at over £12,000 a month, but none of them seem to be moving.”

His colleague Angharad Gabriel, head of Savills Richmond and Barnes lettings, says: “Richmond has seen a surge in rental enquiries for July, and as such we are low on stock. Relocation activity has increased and relocation agents are struggling to house their applicants.”

Richmond attracts people looking for a better quality of life, but the lack of housing stock throughout 2009 and into 2010 continues to move the rentals market into the landlord’s favour and push rents higher, finds Simon Wood, regional lettings director at Hamptons International.

“Hamptons currently lets houses for an average of £3500 a month and apartments for £1700 per month in Richmond. I predict quality tenant levels in the Richmond area will begin to rise now uncertainty over the election and emergency budget has passed, which, unfortunately for tenants, will continue to make this very much a landlord’s market,” adds Wood.