Rents are rising with more demand for homes that is outstripping supply.

Lettings director Gavin Sung from Anscombe & Ringland, part of the Chancellors Group, sees the corporate market returning, with 10 relocation agents contacting the St John’s Wood office over one day alone.

“There is great interest from mainly American families – and some from the Far East – for three-bedroom flats in the £800 to £1000 a week bracket,” he says.

Due to less stock on the market, Sung notes an upswing in rents by 25 to 30 per cent. “Tenants look elsewhere, but can’t find anything so end up renewing contracts at 25 per cent higher.”

Buy-to-let is not dead, with investors from Greece, Italy, China, India and the Far East. “The pound is cheap and cash flow not important. Investors are looking towards long-term capital gains,” he adds.

Julia Garber from Sandfords in Marylebone has had numerous requests lately to value property. That, combined with tenants leaving, is encouraging regarding more stock for the summer months.

“We have a lot of students arriving in the summer and there is a definite shortage of one and two-bedroom flats. Also, we have international bankers and workers at the American Embassy keen to find good corporate lets,” Garber explains.

With Marylebone now dubbed “the new King’s Road, but friendlier,” she says it is attracting many French tenants who are keen on living in the NW1 postcode, as well as Spanish, Italian and the occasional Russian tenant.

David Pepper from Brian Lack & Co in West Hampstead is seeing particularly low levels of property at the lower end of the market.

“We have also seen a number of prospective tenants with wildly unrealistic budgets. Their budgets would have been inadequate at the best of times but with such a shortage of stock they’re having to adjust their expectations.”