Agents are reporting high levels of stock due to properties being advertised on both the sales and rentals books. “Vendors finding it hard to sell are putting their homes up for rent as well, or taking them off the sales market and just putting them up to let,” says Libby Watt from Manors in Marylebone.

She notes there are fewer relocations coming from abroad, and hopes moves will increase in the autumn now that the summer holidays are over.

“There is more demand for one and two-bedroom flats from young couples and wealthy students with around £500 a week to spend. As these are our bread-and-butter lets, we can always do with more flats to rent,” says Watt.

Even though there are likely to be fewer corporate tenants in future, she says, more people uneasy about buying a home right now might be turning to lettings. “Maybe we will see more people taking on 12-month contracts with a break clause while they hunt for somewhere to buy.”

Watt is also trying to get landlords to be more realistic. “They can’t expect the same rents as last year when stocks were low.”

In St John’s Wood, the corporate market is strong – although budgets for those relocating are slightly down, says Thomas Joyce from Cluttons. “Landlords are becoming more flexible in offering furnished or unfurnished properties,” Joyce notes.

There is more flexibility on price offers as well. A landlord asking for £1000 a week is accepting less in some instances, he suggests.

As in many other parts of the capital, Cluttons is witnessing the trend for property to be advertised on the sales and lettings sides at the same time. “Quite a few tenants are renewing too – there is not quite as much movement,” adds Joyce.