A number of people are looking for rental homes south of the Thames, but with a huge shortage of property there is little choice.

“Good property is letting just like that and some of our offices have 25 per cent less than they had last year,” comments Virginia Skilbeck, Douglas & Gordon’s director of lettings.

Another problem is landlords selling property when tenancies come to an end, leading to even less stock. Although Skilbeck is not certain why they are selling, she thinks perhaps some are taking the opportunity to sell before things could possibly slump again in a double dip economy.

Ironically, things could not be better for landlords. “Yields will get better and rents are increasing. They can only rise higher with such low stock levels,” points out Skilbeck.

She also notes tenants are negotiating long two- year contracts without break clauses, so they won’t get kicked out when a landlord sells.

Nicole Chamberland from Townends in Putney has had a number of new rental home instructions over the last two weeks and says she can only hope it continues.

“Rents have remained stable, or in some cases have increased slightly, depending on the type of property. We are still finding converted one-bedroom garden flats to be the most popular, usually letting within a matter of days,” she adds.

There has been a marked increase in the levels of corporate activity south of the river, according to Mary O’Grady, head of Savills Wandsworth and Clapham lettings.

“There have been more enquiries from relocation agents undertaking property searches for banks,” says O’Grady, “and these tenants are looking in Wandsworth and Clapham, as well as in Fulham and Richmond where they can get more house for their money than in neighbouring Chelsea or South Kensington.”