After a subdued 18 months, the rentals market is strong with higher rents reflecting its buoyancy.

Mark Tunstall of Savills Knightsbridge reports wannabe tenants looking for property with generous budgets of up to £20,000 a week. “As well as City high flyers, we have applicants from India, Brazil and Russia hunting for trophy homes. While they probably want to buy in the long-term, they’re happy to rent for a year or two.”

Demand has increased as accidental landlords continue to sell, suggests Annaliese Griffiss from Henry & James. Tenants are fussy and expanding their searches. “They’re more concerned about getting the right property than being in a particular area. The flip side is we’re being asked to take on homes outside the SW1X postcode, extending into St James and Mayfair.”

Ivor Dickinson, managing director of Douglas & Gordon, says: “Those who can’t afford to buy a property in London continue to be forced into rented accommodation, but supply is still at worryingly low levels with four people fighting for every one property available. Tenants have to be the first through the door and willing to pay the price if they don’t want to lose out.” Dickinson also notes more buy-to-let investors, encouraged by increasing rents, are entering the market.

Anita Nott-Bower of Ayrton Wylie says highest demand is for two to three-bedroom homes from £850 to £1400 a week. “There’s been a 27 per cent fall in available properties since this time last year and I predict prices will continue to rise in 2011. It’s a great time for landlords to rent their property.”

David Silver from Townends Estate Agents Brook Green advises using any void periods to carry out works to “get a jump on the competition and ensure a quick let at a good price.”