Agents report a good start to 2011, with many anticipating a healthy February, judging by high applicant levels.

Annaliese Griffiss from Henry & James says most enquiries have been at the lower end with budgets up to £700 a week for a two to three-bedroom flat.

“Quality is still of huge importance and if a property is not well decorated or furnished, it simply will not let. We’re still suffering from a shortage of properties this year and are keen on getting new instructions,” adds Griffiss.

Natalie Passmore from Townends Estate Agents has also witnessed a great start to the year, with high numbers of quality new applicants, as well as increased interest for company lets.

“With stock levels remaining low, we are finding that applicants are more flexible in their requirements, as they realise there are fewer opportunities to find something that ticks all the boxes.” For example, tenants are more willing to compromise on whether a property is furnished or unfurnished, if the accommodation otherwise meets their requirements, Passmore suggests.

Townends has also observed a number of applicants looking for long term rentals that might offer a one and two-year contract, enabling these would-be buyers to save on renewal fees and secure accommodation for a longer period until the market picks up.

“The most popular properties at the moment are the more affordable one and two-bedroom properties, with many well presented properties being let the same day they come to the market. Those looking for the pricier three bedroom and high-end homes have a greater choice with more available stock in this bracket,” adds Passmore.

The market is still extremely busy and applicants are abundant in the central and south-west sectors of the capital, which should make for a buoyant lettings market in 2011.