Those tenants in secure jobs are seizing the opportunity to trade up the lettings ladder, securing bigger, more attractive properties for the same price.
A surge in property supply, caused by the flood of home owners who are unable to sell and are choosing to let instead, is fuelling the supply/demand imbalance and driving rents down. This is good news for tenants, who are finding there is a vast choice of property available within their budget - Cluttons has found tenants are undertaking an average of 12 viewings before committing to a property, compared with 4 a year ago.
In addition, increasing unemployment in the capital is weighing heavily on demand for rental properties, combined with a reduction in budgets by tenants who are tightening their belts across the board.
Lynn Hilton, Partner for Residential Lettings at Cluttons, comments: "London's tenants are enjoying the greatest choice of rental property for years, combined with cheaper rents and greater negotiating power. The savviest among them are making multiple offers on properties and then choosing the best deal, while jittery landlords, keen to keep their properties tenanted, are agreeing deals.
"Lower value property is performing well, however, as tenants concerned about their financial future opt to downsize and reduce their outgoings. There is strong demand for one and two-bedroom properties in areas such as Wapping, TowerBridge and South Kensington/Chelsea, in the region of £350 - £500 per week."
