Tenants are now frequently seeking assurances over the financial stability of their landlord. They are also demanding long-term contracts of a year or more with no break clause, to lock the landlord into low rents for as long as possible.
Lynn Hilton, Partner for Residential Lettings at Cluttons, said: "London tenants have been quick to take advantage of their position over landlords. With so many rental properties on the market, they are happy to look elsewhere if landlords don’t accept their terms.
"Over the last few months it has become commonplace for tenants to question the financial security of the landlord, over concerns that the financial climate might lead to them defaulting on their mortgage. This perception of potentially high-risk landlords is another factor leading to many rental expectations being adjusted.
"Tenant preference for long-term deals is also a new feature of the market.
"Traditionally, tenants have preferred not to be tied in to a property for too long, giving themselves the option to give notice after the initial six months, but currently landlords are the ones being locked into long-term tenancy agreements as tenants look to take advantage of low rent levels."
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