Rents have risen by five per cent over the past few months in Putney, caused by limited stock of all property types from family homes to studio flats, reports Chris Firth from Chesterton Humberts.

“Tenants hunting for studios and one-bed apartments have been the most active,” he says. Some buy-to-let investors looking to sell, but unable to achieve the price they had in mind, have decided to re-let their property again, bringing more studio and one-bed flats to the rental market.

Firth expects the market to strengthen next year, with continuing prise rises, due to limited numbers of homes to rent.

Those tenants unable to afford increased rents at the end of their tenancies are shifting over geographically to more reasonable areas. Patrick Littlemore of Marsh & Parsons has seen tenants move from Barnes to Putney, Sheen and Mortlake.

He also notes the popularity of Clapham, particularly for young couples and families. “A one- bedroom flat in Clapham Old Town costs about £350 to 400 a week. The area demands a big price as it offers space all year round and it’s easy to jump on a tube to get to the City.”

Littlemore suggests more lettings property is likely to come onto the market next year. “People not getting the sales prices they hoped for are turning to lettings instead. However, I don’t think we’ll have as many ‘accidental landlords’ as we had in 2008 and 2009.”

Erol Dogruel from Townends Estate Agents in Putney has witnessed a 20 per cent increase in the number of tenants looking for homes compared to 2009.

“We’ve seen a surge of new stock coming to the market, and with a lot of tenant movement and some handing in their notices over the past few weeks, we’ve already rented out properties ahead of their 2011 availability,” Dogruel adds.