Levels of property for prospective tenants to let are still low, and the increasing number of registering tenants is compounding the problem, according to Rebecca Atkins of Brian Lack & Co in St John’s Wood.

“Most properties are easily going for the full asking price, with tenants fighting for the best places. Rents are rising as a result,” she suggests.

There’s a particular shortage of larger houses, finds Nicole Shaffer from Hanover Residential in St John’s Wood and Hampstead.

“More people, especially from Iran and America, are hunting for bigger houses. More flats are coming onto the market, but we really would like to see more larger homes,” she says.

Shaffer says there’s also very little currently available with outside space, which a number of prospective tenants are keen to get hold of.

The corporate market is back, with a number of people desiring four-bedroom homes costing about £1500 to £2000 a week. Those wanting houses above that price level are finding it difficult to locate anything much.

“The good news is more property is coming onto our books, and despite the financial uncertainty, many landlords are inclined to hold onto their property, rather than sell it on,” Shaffer believes.

Her sage advice is for landlords to hang on if they possibly can, because in the long term, their investment will stack up. With the shortage of rental homes,
prices are rising already, and if landlords sell, they could be sorely disappointed when the market rises further.

“Once a property has gone, that’s it. You can’t get it back,” adds Shaffer.

Areas that are proving particularly popular include Regent’s Park – people are attracted to the greenery in the summer – and St John’s Wood with its busy High Street, shops and restaurants.