While the rental market is performing well, the vast numbers of sellers who have decided to let their property instead has driven a surge in supply, which is starting to have an impact on rents.
Cluttons' South Kensington office reports that over the last month, rents have fallen by up to 5% in South Kensington, Chelsea and Knightsbridge, where the supply of property has doubled since the same time last year.
Tenants are becoming more demanding as the market swings in their favour and landlords are now less likely to receive the uplift in rents at renewal that they might previously have achieved. They should consider making improvements to their property or offering added extras such as cleaners or gardeners to make their property more appealing.
Amelia Greene, partner for Lettings at Cluttons' South Kensington office, commented: "To prosper in the current conditions, landlords must have realistic expectations regarding rental income and steer clear of void periods at all costs. A number of 'accidental landlords' who have come to the market reluctantly after failing to sell their property, are refusing to budge at all on the asking rent, instead settling for void periods which professional landlords know are seriously detrimental to yields."
