City Landlords Warned Not To Overprice Their Properties This Autumn

18 October 2012 Categories: News

City Landlords Warned Not To Overprice Their Properties This Autumn

According to London estate agents, Cluttons, the rental market in central London, and indeed in many other cities in the UK, has become worryingly quiet over the last few months, with a 20% drop in demand for larger properties. It is thought this unusual downturn is due to corporate employers slashing their budgets with regards to employee accommodation, and as a result London Landlords in particular are being warned to price their rental properties sensibly.

Autumn is normally a busy time for the private rental sector however company relocations are being kept to a minimum and those individuals that are relocating due to work are, more often than not, looking for low budget accommodation.

Lynn Hilton, one of Clutton’s residential lettings partners, commented on the unexpected downturn saying, “Tenant demand has dipped by 20% since the summer, resulting in growing competition for lower cost rentals under £500 per week, so landlords need to put themselves in a favourable position by being competitively priced.

“Tenants have new buying power and landlords who are inflexible on rent and contract terms will find themselves facing void periods.

On a more positive note though, it is thought that activity will pick-up again towards the end of the year when tenants who locked themselves into rental agreements designed to cover the duration of the Olympic Games start to look for new properties.