Across the whole market, Cluttons forecasts an increase in rental values of 2-3% in 2011. In 2010, landlords were achieving considerable uplifts in rent when contracts were renewed, but the rate of increase has slipped back in 2011 as landlords respond to tenant sensitivity to cost and job security.
Lynn Hilton, Partner for Residential Lettings at Cluttons, said: "Tenants are considerably more cost conscious than they were even a year ago, as it becomes apparent the economic recovery will be slower than expected. Relocation agents too are working to much smaller budgets, typically £250-400 per week, which is contributing towards a bottleneck in the market at this level where supply is at its lowest. This means some tenants are having to seek property outside of London’s prime areas."
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