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Saturday, September 04, 2010

London professionals push up rents

It looks like the bankers are over the crisis that they in part caused.

Now they are all wedged up they are apparently pushing up rents in London's Canary Wharf.

Benham & Reeves is reporting a 34.7% rise in new tenant registrations since this time a year ago in the area. The availability of properties is 14% down.

Benham & Reeves is also reporting that where tenants are renewing their tenancies, rents are jumping by between 17% and 23%. On new tenancies, rents are up by an average of 19%.

It appears that the rental increases aren't just isolated to Canary Wharf. On the other side of 'town' WA Ellis is reporting a flood of tenant applications resulting in a bidding war between prospective tenants. Lucy Morton of WA Ellis comments:

“Properties newly launched on to the market are being viewed and secured within hours of coming on. Last Wednesday we showed a two-bedroom property on Kings Road with five other prospective tenants viewing it at the same time. Our letting was agreed within ten minutes of the viewing, the holding deposit was paid by credit card and five minutes later the landlord received other offers.”

She said many tenants are staying put and paying more just to keep the property they are already in. “Our average renewal rent is currently 8% more than they were paying.

“Tenants are increasingly paying over the odds in order to be able to stay on. A client recently decided to sell his property at the end of the current tenancy and the tenant managed to persuade him to grant him a further year by paying a 40% increase in rent.”

Now bearing in mind letting agents and estate agents are not known for talking down the market so these figures might have to be taken with a pitch of salt. But it certainly looks like the rental market in London has recovered its nerves!

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