There has been a dramatic swing in favour of landlords in the private sector as an average six applicants are chasing every property up for rent in London.
The London estate agent, Marsh & Parsons, made the claim after a dramatic rise from eighteen months ago. In April last year there were two applicants trying to rent each property on their books. The situation is even worse for anyone looking to rent in the much sought after areas of South London, such as Barnes, and Battersea. The number of applicants chasing each property there has gone up from 2 to 12 in the same period. As a result, prices for properties have soared and landlords have even started to give statutory notice to tenants in order for them to re-let the property and charge a higher rent.
Patrick Littlemore, Director at Marsh & Parsons, said “This is the peak of the year for activity with the start of the school year and the university year about to begin. The milk round, when employers seek graduates, is over and there is an influx of young foreign graduates coming into London which is helping to drive demand. Anyone who signed a tenancy agreement twelve months ago might have got a good deal at the time – but they may face having notice served on them by landlords who are keen to earn a higher rent.”
It is not thought to be a seasonal change, as the same period last year saw only 3.5 times as many applicants than the number of properties available. Last year there was a much better supply of properties than now and the situation is expected to last right up to the New Year. The fierce competition for renting a property means it is good news for landlords. With good Landlord Insurance, ever increasing rents and six applicants after their property it seems for some landlords the good times have returned.