LONDON, October 20, 2011 /PRNewswire/ --
Strong demand for rental properties is extending well into the autumn months, together with a continuing lack of availability of good quality, good value rental homes. According to Benham and Reeves Residential Lettings, the capital's largest, independent lettings-only agency, the market is characterised by an acute shortage of properties, particularly smaller one bed properties and studios.
"Although autumn tends to quieten down a little after the busy summer months, we're still seeing 10 or 11 applicants for every available property in some central London locations," reports Marc von Grundherr, Lettings Director of Benham and Reeves Lettings, a leading London lettings agency with nine offices throughout the capital's best residential areas.
"Our City and Canary Wharf lettings agencies saw their busiest August and September ever and this level of activity is continuing, with exceptional demand for apartments in the new builds coming on stream at the moment. Our City office had 13 offers in just one week - four were for two bedroom units between £550 and £650 per week and nine were for smaller units with average rentals of £350 per week. The shortfall in properties is pushing up rents which have increased by 15%-20%."
"As a result tenants are opting for longer term leases and premium leases (whereby the tenant pays rent in advance for an agreed period) to protect themselves from rent rises from as long as possible. For example, we recently secured a three year tenancy for an apartment at Lanterns Court in Canary Wharf for £345 per week."
"It's a similar story in Central London where there's also an undersupply of one and two bed apartments, and many of these have been snapped up by wealthy overseas students as well as young professionals and couples. In Central London tenants from mainland Europe have agreed over 30% of all new tenancies since the spring, which is a much higher figure than in previous years. There is also an increase in recruitment from financial institutions in the City, adding to the number of corporate tenants relocating from overseas."
"Demand is outstripping supply in North London too, particularly for smaller one bed properties. Hampstead and Highgate are always popular thanks to their village-like atmosphere, great amenities and the wide open spaces of Hampstead Heath. Here the lack of new-build schemes is an issue, further exacerbating the problem."
"One trend that we're seeing in all areas is the constraint on budgets. In some cases this is prompting tenants to rent in high quality developments located on the fringes of traditionally popular areas, offering excellent facilities at more affordable prices. This explains the popularity of new developments such as Caspian Wharf in Bow and This Space in Wandsworth, both highly sought-after by young professionals. And in Hendon, North London, Beaufort Park is another success story. Again, here you will find great amenities and spacious apartments with a high quality finish and excellent transport links. For the latest apartments, which launched at the end of August, we had a list of 20 fully referenced tenants waiting to move in before the properties were even ready, so the trend for seeking out value for money seems to be going from strength to strength."
To find out more about renting or letting a property through Benham and Reeves Residential Lettings, which handles residential lettings throughout London, go to http://www.brlets.co.uk
Established in 1956 in Hampstead, London, and now with nine offices in the prime residential areas of London, (and overseas offices in Singapore, Hong Kong, Dubai and Mumbai), Benham and Reeves Residential Lettings is recognised as one of London's largest, specialist lettings and property management agencies. To complement this, they also provide an interior design, refurbishment and furnishings service for London rental investment properties to landlords based worldwide.
SOURCE Benham and Reeves Residential Lettings