A shortage of stock and a jump in demand are boosting prices. Anscombe & Ringland’s Gavin Sung says stock halved in November in his north-west
London office compared to last year, while he has let 25 per cent more homes.
“With less stock and increased demand, rents have stabilised over the past two months and even started to rise. I am not expecting a huge amount
of stock this month, so prices could go up further,” suggests Sung.
Prices have also stabilised in Marylebone, and risen a bit in some instances, according to Julia Garber from Sandfords. “There is a switch from
tenants wanting high-end homes, as opposed to one to two-bedroom flats last year.”
Garber notes that “relocation agents are back on the phone again and we are letting more property to corporate tenants, including oil company
executives and bankers.”
She says some smart new two-bed flats on the High Street and a few other schemes just off it launching mid-2010 should generate interest too.
Tenants are doing deals and appearing to be less picky, although there are a few with a wish list and price range from a decade ago, believes David Pepper from Brian Lack & Co, West Hampstead. In their favour, landlords are accepting lower renewal rents rather than risk a void period.
“The top end of the market appears quite stagnant and the City boys are not returning to pay premium rents as in years past,” he says.“ Low stock levels and a quiet buy-to-let market are having a knock-on effect as fewer people move
from rented homes into their own property,” Pepper adds.
He expects rents to increase this year,possibly creating a price bubble “as there are fewer new properties coming onto the market and landlords of older properties are keeping their tenants.