Rental demand has increased by 30% since last year, while the total number of available properties reduced by 38% over the same period.

St John’s Wood has also seen an increase in overseas students studying at UCL and Regents College, desperate to find accommodation before the term starts, with pockets deeper than working professional tenants, who are carefully working out their budgets to account for the higher costs of living.

The shortage has caused tenants to dig into saving and offer a whole year in advance to beat the competition, as well as signing for 24 months at over asking price.

When we launch a new property, the phones ring constantly for the first few hours, with tenants offering to take the property without even viewing and asking where to send the deposit.

We strongly urge tenants not to reserve a property without seeing and insist on physical viewings. We have had to restructure the internal offer process to ensure it is as fair as possible and we are not taking deposits until all offers have been received and the final terms agreed. The Tenant Fees Act 2019 restricts agents from taking multiple holding deposits.

Landlords who traditionally have not been ‘greedy‘ and happy to accept fair market rent are experiencing higher mortgage payments due to increase interest rates and therefore looking to capitalise on the current market, both on new lets and also Tenancy Renewals, where traditionally a good tenant who has built up a good relationship and regular payment history are now being squeezed out by the temptation of high rents to cover the Landlords increased costs.

Will the market change? We don’t have a crystal ball, however, although we do have buyers looking for buy to let properties, we know that the buy to let demand is down, while mortgages are exceptionally difficult to procure, stamp duty for buy to lets requires an addition 3% payment and tax benefits have been reduced.

So while demand is high, stock is low, we see the market continuing as it is through to the end of the year.

As always, we are here to advise and give current market appraisals, using up to the minute comparable evidence of properties that have rented in the area.

Feel free to call or email me at lewis@greenstone.com