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Increase in lettings supply pushes down rents

publication date: Apr 14, 2009
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Caroline Kavanagh, Badger HoldingsThe rise in the number of new properties coming to the lettings market in the first few months of the year and consumer caution on spending is pushing down rents. 

Caroline Kavanagh, Group Lettings Director for Badger Holdings says, “With supply outweighing demand, London has seen the largest change with properties, in some cases, achieving as much as 20-25% less than last year. Outside of London, our Surrey offices have reported lower reductions in the region of 10-15%. 

"With more than half of all tenants opting to remain in their property for a further term, it is has become increasingly rare for an uplift in rent to be achieved, in fact many tenants are negotiating to reflect current market conditions. Whilst, initially, a landlord may feel he is better off putting the property back on to the market, we would advise them to think of the long term benefits such as security and the quality of the tenant they have in place, which should outweigh the little extra they may or may not get by remarketing. 

"They also need to be conscious of the fact that some tenants are finding it harder to get through the referencing process, be it due to lower earnings or less job stability. landlords should remain open minded and take into consideration the tenants payment history.”