Shortage of Stock in London Property Market Defies Expectations

Climate Change in the London Lettings Market?

We're baffled. It's not very often that estate agents will admit they got it wrong but the reality on the ground is defying our expectation - for now at least. We've got more corporate and professional tenants looking for property to rent in London - and not enough stock to show them.

October is not meant to be like this, landlords are traditionally peering ahead and starting to worry they might be left on the shelf over the Winter. Tenants are usually starting to sniff blood by mid October and prices falling accordingly. 2009 is looking very different.

Our London lettings offices are letting flats and houses faster than we are taking them on. There simply isn't enough stock of property available to let to go around. One flat to let in Gloucester Road, as reported in the previous blog has just been let by Chard within 30 minutes - at 125 per week over a rival agent's valuation too.

We're seeing a lot of "new blood recruitment" in the City pushing demand and prices as a consequence. This comes at a barren time to be looking for a new home to rent as new graduates and record numbers of monied oversees students have taken up all the slack in the market up to 750 per week over the last 6-8 weeks.

As long as it lasts it looks like an long Indian Summer for London landlords.