The investment firm London Central Portfolio says the volume of prime central London rental stock has increased dramatically in recent months as many landlords opt to let their properties rather than sell them in the current market.
Using data from LonRes, LCP says that in the past three months the number of properties to let in the area has increased nearly three fold from 8,834 to 24,761.
It says tenants are drawn to small, good value and recently refurbished units, meaning "weekly rents for small refurbished flats have performed best this quarter with new lets achieving a 3.6 per cent uplift over anticipated rents," according to LCP.
But it warns that given current high levels of supply, rents for older properties have remained largely static in the past three months.
"Landlords, therefore, should look to retain existing tenants if possible rather than remarketing in the hope of achieving higher rents. They may also need to be open to carrying out remedial and upgrade works between tenancies to remain competitive at re-let stage," advises the firm.
Article courtesy of Letting Agent Today | Sign up for Letting Agent Today newsletter | Get this news on YOUR site!