Quite a few London letting agents are asking landlords not to jump on the Olympic bandwagon but stay put with the good long-term tenants. Short-lets could potentially mean great fees for agents so we doubt they would be campaigning against it if they didn’t think it really was too risky.

Property consultants Cluttons confirms that there is little evidence that landlords are hoping to cash in on Olympic demand, with the vast majority focusing on keeping good tenants in place amid uncertainty over the job market and the wider economy.

Lynn Hilton, partner for residential lettings, said: “There is some nervousness in the market from both landlords and tenants, with both parties keen to make compromises in order to renew contracts and avoid returning to the market.

“It is still unclear the extent to which landlords will benefit from high value, short-term lets over the Olympic period, but at the moment those who have good quality tenants in place are looking at the bigger picture and focusing on securing ongoing Shorthold Tenancy Agreements, thus reducing the risk of void periods.”

Currell, the estate agent with offices in  Clerkenwell, Hackney, Victoria Park and Islington, reports that the tenant demand has grown significantly compared to the previous year:

January saw us create 13% more tenancies than January 2011, whilst February looks like it’s going to be 22% up on February 2011.

The early months of any year are typically amongst the quietest in lettings, but we’re experiencing very strong tenant demand. Our feeling is that there is not enough lettings stock to satisfy this demand; applicants registering with us relaying this to us in the way that they always do, “no one’s got anything!” The only caveat to this being that the upper end of the market (+£700 per week) is a little quiet, but this is a seasonal norm and we expect it to pick up over the next few weeks.

If you are considering purchasing another, or your first, rental property we can honestly say that now is as good a time as it has been in recent years – if not the best. New build apartments and houses will normally provide a far stronger yield than period properties (certainly at this precise moment in time), whilst they also typically fulfil the main requirements of most tenants – clean, contemporary accommodation.

Check out Currell’s rental offers.

Chesterton Humberts has re-launched its Facebook profile with an innovative new property search function.

Like Chesterton Humberts to search for rentals without leaving Facebook: www.facebook.com/chestertonhumberts.

They are currently the only national estate agent to offer a property search function on Facebook, allowing users to remain on the Facebook website whilst browsing properties. Other agents’ Facebook pages require users to navigate away from the website in order to perform property searches or view search results.

Foxtons has launched a new service which allows landlords and tenants to conduct rental deals online. This eliminates the need for time consuming journeys to high street branches to sign rental agreements and pay deposits.

Estate agent Douglas & Gordon‘s latest London lettings market comment:

“There is a glimmer of hope for hard pressed tenants in London as although the number of applicants has increased in August, supply levels are increasing and we are expecting to see rental prices stabilising.”

“Moving into the autumn market, we are seeing more buy-to-let landlords. Existing landlords are holding onto their investments and opting to re-finance as demand for rental properties continues to increase, there are no void periods and good capital growth is predicted.

“With the stock market continuing to be volatile, investors are continuing to see the London property market as a stable and safe place to invest in.”

Any investors out there still hesitating? Now is the time to become a landlord in London!

Source: Douglas & Gordon: London Barometer August 2011

Homes & Property columnist accidental landlord Victoria has recently been looking for a letting agent to help her manage a rental flat. One agent did not fail to surprise:

An agent who contacted me via my ad on Gumtree offered to take over the management of the flat, and he said he’d guarantee the rent for a year. “How come?” I asked. “I evict anyone who’s more than seven days late with their rent,” he said. “Simple. Don’t bother serving them notices and stuff. Just get rid of them. I put a special clause in the contract saying I can kick them out in a week. See, I’m not like other agents.” Err, no, hopefully not.

Meanwhile, the government has announced that there are no plans to introduce regulation on the private rental sector.

The latest market overview by estate agent W A Ellis sheds some light on how busy the London rental market currently is.

Lucy Morton, senior partner and head of lettings at W A Ellis, comments:

“July and August can traditionally be quiet months in the lettings calendar followed by September heralding a blitz of activity. This year has been a very different story – in both months, activity and completed lettings have been 50% up on this time last year and we go into autumn with this continued frenzy of activity.

“Demand continues to outweigh supply and the press is once again highlighting the fact that we are well into generation rent with the average person having to wait 10 years to save a deposit for a purchase. We not only have those tenants who are forced to rent for financial reasons, but also the frustrated purchaser who is simply unable to find a suitable property to purchase due to the lack of stock. In addition, High Net Worth students arrived in London in their droves this month, together with the late comers into the family market who have left it to the last minute to get settled.

“This has led to heightened demand in the rental market and as such, bidding wars are common place. It is increasingly very much a landlord’s market with landlords dictating the terms. Void periods are well below the 3 week mark on a desirable property presented in first class condition and tenants are paying substantial increases to stay in their current homes.

“The short terms lettings market also continues to see heightened activity due to the impending Olympics. With the major hotels being fully booked, there is a rush to reserve short term lettings from next July at as much as six times the normal lettings values. It remains to be seen how many landlords will be tempted, but they should be aware that they may well be in breach of planning regulations which stipulate no lettings under 90 days. Our concern is that some may fall into the trap of making a short term gain and suffer heavy wear and tear on their property with voids either side and turning away a stable, long term let.”

Source: W.A. Ellis

Letting agents have come up with a SAFEagent mark that makes it easy for tenants and landlords to identify agents who are in Client Money Protection insurance schemes. This means that the agent has a separate designated client account where your money is held completely separate from the operating funds of the firm.

There are several Client Money Protection insurance schemes operated by ARLA/NFOPP, the Law Society, NALS and RICS to which agents voluntarily belong. The scope of these schemes varies and you should always ask your agent for full details of the scheme of which they are a part.

Find a SAFE agent.

Not in time for The Carnival but just in time for the busiest month on the rental market – property consultant Strutt & Parker will open the doors to it’s new office at 303 Westbourne Grove in Notting Hill in the beginning of September. Locals may remember that this shop was previously occupied by The Vintage Shop of Ballantyne.

Estate agent Fitz-Gibbons has just published the new Richmond Magazine where Jane Wheeler, Manager of Fitz-Gibbon Richmond, surveys the lettings scene:

The local lettings market is vibrant right now, with demand outstripping supply across the board. As uncertainty continues in the sales market, lettings is being fuelled by the discerning corporate market – international tenants seeking superior homes near London, as well as local people who are renting for longer periods.

At Fitz-Gibbon Richmond, we’re seeing not only strong offers, but also multiple offers placed on the same property time and again. Fortunately, most tenants are being flexible in terms of their demands – and, in a landlord’s market, that’s vitally important for those wishing to secure a property. In addition, tenants should ensure that they come to viewings fully prepared and able to act quickly.

One-bedroom properties are currently achieving between £1,300 and £1,500 per calendar month, whilst two-bedroom homes, with parking and gardens, can generate up to £2,300pcm.

For three-bedroom houses, expect valuations between £1,900 and £3,500pcm. As for homes with four or more bedrooms, they can achieve between £4,000 and £10,000, depending on their location and specification. There are always exceptions to these rules, however, and the property market determines rental values for outstanding properties.

Another key point is that, in the current climate, many homes that we would expect to remarket are not becoming available, as our tenants are choosing to renew their tenancy agreements.

Renewal rates currently mirror the retail price index or above. And this renewals trend is a reflection of two things: Firstly, the volumes of locals waiting to re-enter the sales market; and secondly, the stronger corporate market, with tenants residing in the area for longer periods.

Richmond’s transport links to London, Heathrow and the M4 make it ideally suited to the corporate market and, as a lettings specialist, Fitz-Gibbon naturally attracts both large corporations and leading relocation agents.

Read also Fitz-Gibbons Property and Lettings e-zine.

Every day brings something new to our mailbox from the local estate agents. I am not exaggerating, the competition is really tough here!

Today’s treat – letting agent Anthony Sharp‘s magazine Let!

Queens Gardens in Bayswater W2

Knight Frank has released the Prime London Lettings Index for April 2011:

- Prime London rents rose 0.4% in April, representing their 20th consecutive monthly rise. The latest monthly rise contributes to an annual growth rate of 16.3%.

- Rents in central London are at a record high, up 25% since their low point in June 2009 and marginally exceeding the previous peak reached in March 2008 by 0.2%.

- Strong rental growth has outpaced capital value growth over the past year, and has pulled income yields higher, with prime central London gross yields hitting an average of 3.8% in April, up from 3.3% in June last year.

“With rents now marginally above their March 2008 peak level we still see scope for 5% to 10% rises in rents during 2011,” predicts Liam Bailey, Head of Knight Frank Residential Research.

Read the full report HERE.

“I really can’t understand where all the stock’s gone!” Peter Rollings, Chief Executive of London Estate Agents Marsh & Parsons, says it like it is.

Macclesfield House, London EC1. April 2011.

Letting agent Benham & Reeves reports of a severe shortage of properties for prospective tenants in London.

“Summer has come early to London in every sense – the sun is out and the rental market is ultra-hot thanks to a unique combination of four factors” explains Anita Mehra, Managing Director of Benham and Reeves Residential Lettings.

“Firstly, property remains very attractive to overseas investors because of the exchange rate, which makes many homes effectively 20 per cent cheaper now than in 2006″ says Anita, who has just returned from several property exhibitions in Hong Kong, Singapore and Kuala Lumpur.

“Secondly, the City – on which much of the Capital’s prime rental market depends – is in good health. Experian, a business consultancy, predicts London’s financial and business services sector will grow 2.8% per annum over the next five years” she says. The result is that many overseas financial services experts are coming to the UK for short periods and become the professional tenants who so many landlords want to attract.

Thirdly, there are growing numbers of international students in London – there are now 285,000, some 25% more than just two years ago, and academic experts say there will be a predicted 47,000 student-bed shortfall by 2016 as the number of incomers grows well beyond the construction of purpose-built accommodation.

Finally, falling levels of new house-building and continued mortgage restrictions, especially for first time and young professional buyers, mean the demand for London homes – to buy and to rent – look likely to outstrip supply for many years to come.

Annual lettings activity in West London, from Spring issue of London Portrait by estate agent Marsh & Parsons.