With double the amount of property normally held on agents’ books, there is great competition in the rentals market. “We are saturated with property, due to the number of people putting up their homes for sale and rent at the same time,” says Morgan Senior from Jeremy James & Company in Marylebone. “This means property is on the market longer and prices are coming down.”

One example of a price reduction is a high- end home on at £1800 a week that has gone down to £1400 (nearly a 20 per cent drop), while the lower end is down only by about five per cent, adds Senior.

Another new trend is people downsizing to save money. “Instead of renting a one-bed flat for £1000 a week, they look at one that has gone down to £600.”

Senior says that although there are a lot of ‘cheeky offers’ from tenants, the market is balancing itself out somewhat, as rents did go up over the last two years by about £100 to £150 a week.

Benham & Reeves is reporting a surge in enquiries for smaller studios, and one and two- bedroom apartments. However, larger family homes, which remain unsold and are coming onto the lettings market, are taking longer to let.

Suzan Shukri of Benham & Reeves, West Hampstead, says: “The corporate relocation market has slowed down and companies are no longer sending their staff overseas, so there isn’t a demand for large family properties.”

Another trend is the migration of tenants from Canary Wharf and City locations to Hampstead and surrounding areas. “I think it is because this area has a great family environment,” says Katia Ilieva of Benham & Reeves St John’s Wood. “There are good schools and lots of green space, with Regent’s Park and Hampstead Heath, yet it’s not far from the West End and City.”