First Signs That Lettings Market Is Rebalancing

The Lettings market is beginning to rebalance, with stock levels increasing and supply and demand stabilising for the first time this year, according to the latest figures from Hamptons International.

The report, which looks at the previous month’s performance of the agency, has highlighted strong activity levels throughout the month of June and early July, with further increases in properties coming to the market, which has in turn eased stock shortages across the network. The increase in stock is due to a combination of seasonality, dual listings with properties which are also for sale and people relocating overseas who want to let their property for a short period of time.

In line with the traditional Summer boom for the Lettings market, demand for Lettings properties has continued to increase across all regions in the network.

Activity Highlights

• The number of Lettings properties on the market is 23 per cent higher than the same period last year

• The number of applicant registrations has increased by 20 per cent compared with this time last year

Lesley Cairns, Head of Lettings at Hamptons International, commented on the findings: “We are now beginning to see a more considered approach to rent increases as supply improves across our South of England network. New supply of rental property in London is now 20 per cent higher in London and 28 per cent higher across the South East compared with last year.

“Although demand remains strong in most areas, stock increases are now beginning to impact on rents. Year over year average rents are now up 6.7 percent across our network, but the rate of growth has slowed in recent months.

“Improvements in stock levels have also taken some of the heat out of the transaction process, which until recently was regularly seeing multiple offers on the same day and very few deals going for much below asking price. It is certainly still a landlord’s market, but tenants are starting to get a taste for choice again. Average viewings per deal have increased from 10 to 12 over the year, with the index a little higher in London than outside the Capital.”