However, several rental "hotspots" remain with the North and Midlands reporting increased activity in the family and "in-betweeners" market.
Commenting on October market activity Judienne said: "Letting activity in London and the Home Counties in particular has seen the biggest falls compared to the same period last year. For example, our Chelsea office reports a very quiet market that is leading to a number of rent renegotiations taking place. The main reason for this slow down is due to the sales market, which has turned around over the last quarter.
"With young, professional tenants remaining the largest tenant group, one and two bedroom accommodation are generally still in the greatest demand.
However, the number of families relocating because of work and the rise in the number of in-betweeners looking to rent is growing throughout the country.
"Until recently in-betweeners were more of a South East phenomena. But with house prices increasing at tremendous rates in the north this year, many owners have sold at what they consider to be the height of the market, and are now renting in the hope that prices will fall before they buy again.
This is particularly the case in Yorkshire and the NorthEast and hence there is increased demand for three and four bedroom family accommodation.
Towns such as Harrogate, Shipley and Jesmond report shortages of such homes compared to an oversupply of two bedroom flats."
Several Bradford & Bingley letting branches across the country support the view that increasing numbers of young people are renting for longer.
Paula Berry of Bradford & Bingley Gascoigne-Pees in Chelsea reports: "We are experiencing a tenant's market which is culminating in an increase in rent renegotiations. The main reason for this lies with the buoyant sales market. Our colleagues in residential sales report their busiest autumn for
years which is having a knock on effect for lettings as more tenants decided now is the time to buy. We are seeing rents fall. For example, a 1 bed flat that was on for £400 per week is now being renegotiated down to £350 per week. Landlords have to be realistic with rents to avoid losing a good tenant. If they are not prepared to renegotiate there is enough choice due to an oversupply of investor properties for a tenant to pick and choose.
Helen Harrison, Bradford & Bingley Renton & Renton in Shipley, West Yorkshire comments: "The in-betweeners market was particularly busy in October. Having sold at what they consider to be top of the market many families are now renting in the hope that prices fall and they will buy again. Tenants in this sector are happy to rent smaller properties compared to the home they sold as they hope it will be a short-term measure.
However, this means that houses rather than flats are currently more popular with tenants."
Pam Murch, Bradford & Bingley Sykes Waterhouse in Allerton says: "We have seen an increase in the number of relocators, both families and young professionals, who are choosing to rent in order to get to know the area before purchasing. A large percentage of tenants are prepared to rent a smaller property than the one they hope to buy in order to save money for a
deposit. Rents are steady; two bedroom properties are achieving on average between £450 per month up to £800, depending on the area. Rents for a houses stand on average between £500 up to £1200 per month."
Gail McClelland of Bradford & Bingley Locke & England in Leamington Spa reports: "We have experienced a busier month compared to the same period last year. The market has been boosted by an increase in overseas tenants.
Both single professionals and families that have been relocated by their employers. This has boosted the top end market in particular in the £1,800 per month category. Otherwise furnished two bedroom flats remain the most in demand as young tenants still cannot afford to buy in Leamington Spa
where prices continue to rise.
