One of PCL’s top lettings agencies has reported a massive 94% year on year increase in tenancies, seemingly driven by disappointed buyers giving up on the idea of finding their perfect pad.
Over to Lucy Morton of W.A.Ellis: “The prime central London lettings market has been mixed throughout the second quarter of this year, with the precursor to the general election at the beginning and ending with June seeing a significant 94% increase in tenancies year on year. This is down to a number of factors, including disappointed purchasers turning to let for a variety of reasons, for example, being unable to secure finance, or the right property. As a result, many more enquiries come to us with an open mind and are happy to rent their desired property.
“Activity levels are now steady as we enter Q3, however, there has been a noticeable increase in the level of rental stock available, mainly as a result of landlords awaiting the outcome of the general election and deciding now to let instead of sell their properties. Higher stock levels have meant that competition between landlords has increased and properties that are in optimal condition are letting first as tenants shop around more than they were this time last year. Despite the increase in tenancies, the market is highly price sensitive and a property correctly priced will attract multiple enquiries; we are encouraging landlords to price their properties realistically in this competitive market place in order to minimise void periods.
“The student market is back in force this quarter; students made up the majority of lets in the one and two bedroom market over the last month as they secure flats before the summer break. The corporate family market has been extremely active, too, particularly in super prime as the savvy families settled before the summer rush. There appears to be more families arriving in London as the economy picks up and there is increased confidence in the City, however, there is less change over with more corporate families arriving to get settled than leaving.
“The market is still showing signs of growth, and increasing activity levels bode well for the summer, we anticipate continued activity over the coming months.”
Lucy Morton is Director and Head of Agency at W.A.Ellis, part of the JLL Group