Lack of promotion and nervousness over job prospects in the City has lead to increased price sensitivity among tenants and, consequently, greater flexibility from landlords, who are keen to keep good quality tenants in place and minimise void periods.
Reduced budgets and the slashing, or withdrawal, of corporate Housing Allowance have enticed tenants and relocation agents to consider locations such as Islington, in search of lower value properties that still have strong commuter links to the City. Some Prime Central London landlords are adjusting their expectations and accepting lower offers. There has also been an upturn in the number of sharers around the capital who are looking to contain costs while benefiting from living in central locations, such as Hyde Park.
Lynn Hilton, Partner for Residential Lettings at Cluttons, said:
“The remarkable growth in rental values seen last year could not continue and this correction in values will bring the market back to a more stable level. While there is considerable economic uncertainty, we don’t anticipate a drastic reduction in rents as demand is still high, but tenants will undoubtedly welcome increased choice and negotiating power."
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