Rob Lindfield, manager of our Renewals department has reported a record high of 85% of all tenancies extending their contract with the majority signing up for a further fixed term of one year.
So what is it exactly that is creating this surge? You may be aware that the summer is peak time in the lettings market due to it being the beginning of the academic year. There is always an influx of graduates coming into London and looking for work after completing their degrees and taking a summer break. Added to which there is the impact of London universities pushing their international students to plan well ahead to secure lodgings for the beginning of the academic year, due to the high demand for property in London.
Consequently, September is a classic time for tenancies to come to an end. In fact, there are two and a half times more tenancies due to end in September, than in January. So, if you add these factors to the increasing supply and demand issues facing Londoners today you will see why the renewals teams have been so busy.
What does this mean for the market place? It means that to avoid losing out, more tenants are staying put in their current rental properties than ever before which is creating even more of a shortage of stock for tenants that are looking to move as well as those looking to move into London.
Supply and demand imbalances usually lead to strong rental levels but also a fast-moving market, so if you are a tenant and you like your current home then we recommend you renew your lease if possible. It is often significantly cheaper and without doubt it is far less stressful than moving home, or worse still not being able to find somewhere to move into.
The Renewals team work even further ahead of the lettings teams by contacting all tenants and landlords 10 weeks prior to the tenancy end date so that they can find out the intentions of all parties in good time. If you would like to find out more about renewals, please do not hesitate to get in touch.
