Property firms JLL and W.A. Ellis have recorded a surge in high quality tenants in London seeking a variety of rental property types.
Many corporate, reliable tenants are seeking properties from studio apartments to substantial family homes to rent in the capital. If you are a landlord with a rental property in London, it is vital that you attract this type of tenant to ensure a successful let.
The prime London letting agents found that, despite uncertainty in the market in recent weeks, the sector is showing positivity at this time, with a high number of transactions being agreed for this time of year.
The Head of Residential Activity at JLL and W.A.Ellis, Lucy Morton, explains: “Relocation searches increased by 50% from May to June, which shows there is strong faith in the London market from blue chip companies, and that initial scaremongering about a mass exodus in the market has not slowed down the summer flow of expats coming to the UK in time for the start of the school year in September.”
However, despite a jump in demand from corporate tenants, Morton reports that there are many more rental properties coming onto the market “than we would usually expect at this point in the year”, indicating that many would-be sellers are deciding to avoid the slowdown in property sales and take advantage of the strong lettings market.
She adds: “These clients are asking us to market for lettings either exclusively or alongside sales. Although this means there is greater supply and choice for tenants, some of our clients will still be looking to sell if and when the market changes.”
However, to ensure flexibility for those thinking of potentially selling in the near-term, some landlords are requesting break clauses in their tenancy agreements, which is not popular with many tenants seeking a long-term home.
Morton believes that it is only those landlords that are willing to commit to long-term lets that will succeed in attracting and retaining reliable tenants.
She says: “They [the most successful landlords] offer a three-year commitment, with little flexibility for a landlord to break the terms of the lease – not ideal for those wanting to return to the sales market should things change imminently.
“It is the sensibly priced properties and commercially minded landlords who are succeeding in securing tenants in this competitive market.”
If you are a landlord in London, take advantage of this surge in demand from corporate tenants by offering long-term tenancies.
If you have secured a reliable tenant, remember that it is always possible for renters to experience financial difficulty. To protect your rental income, choose a good Rent Guarantee Insurance policy, which will ensure you still get paid if your tenant falls into rent arrears. Our cover also includes legal expenses, so that you don’t need to worry about evicting a bad tenant!