Cheeky or Realistic? Lower Offers On Property to Let In Notting Hill and Kensington

Our Notting Hill and Kensington lettings office on Campden Hill had five offers from tenants yesterday. Unusually, at close of business only one had been agreed. The properties to let in Bassett Road, W10; Powis Square W11; Ladbroke Road W11 and Queens Gardens W2 attracted offers from a great selection of tenants (mostly working in the City and attracted to the area because of the Central and District line access) albeit as much as 10-15% below asking price. Unsuprisingly, the landlords are holding out for more. There are still plenty of tenants looking and although there's a good choice of property right now, offers this wide of asking look a little short of the mark. We're busy talking to both landlords and tenants to close the gap - and in most cases succeeding.

Our Fulham lettings office on the Fulham Road, SW6 let five one bedroom flats on Saturday - all at asking price. These more affordable flats in Perham Rd W14, Seagrave Rd SW6, Wardo Avenue SW6, Vera Road SW6 and Greswell Street SW 6 literally flew out of the door and prices are holding very firm.

Tenants are being far more careful with their rental budgets and this is manifesting itself with lower "cheeky" offers on larger flats to rent in more expensive areas like Notting Hill, Kensington, Bayswater, South Kensington, Chelsea, Belgravia and Knightsbridge etc. At the same time there's a move towards smaller flats in more affordable areas like Pimlico, Brook Green and Fulham etc. The result is that the latter properties are holding their value whilst the former are being pinched.

What's missing is confidence. Tenants' expectations haven't changed at all. They simply want more for their money. If supply continues to rise they may get it, but not that much more - for now at least.