Caroline Kavanagh, Group Lettings Director of Badger Holdings, comments:
“Currently, tenants are either renewing their tenancy agreement or finding another property to rent whilst they keep saving to buy their dream home or are finding it difficult to attain the right mortgage to suit their needs.
"This continued predicament has caused a significant uplift in demand, a movement that will always have an impact on rental prices. This, coupled with the fact that there are not enough properties on the market to satisfy the growing demand has already pushed rents up in most regions, particularly in areas where properties are centrally located, or simply in excellent condition.
"This trend is set to continue and tenants need to be prepared to pay market value for a property that fits their criteria.
"It is important however, to acknowledge that at the end of 2008 and during the course of 2009 we did see rents dip when an increase in reluctant landlords meant the market experienced an influx of properties.
"The rental market is always shifting to balance itself out and we are now simply in a situation of realignment to current conditions. Average rent prices are also still below what they were five years ago.”
At the beginning of 2009, Townends were recording a high percentage of tenants renewing their agreement at the same rent. However, Caroline says that this has switched the other way now.
She explains:
“We recently had a tenant in Putney who served their notice to try and look for another property. They couldn’t find what they were looking for and came back saying they wanted to stay where they were and would pay market value, so they had to increase the rent to stay in the property.
"Tenants who have been in a similar situation have already accepted the price adjustment. However, anyone who has an agreement coming to an end or is looking to enter the market needs to factor this change in and recognise it immediately. If tenants are unsure about what to expect in their area specifically then they need to speak us, their local estate agent, for advice.”
