Rent increases on renewals on the up due to stock shortages

June 2, 2011 - PRLog -- Market activity summary:

•   21% increase in rent renewal values compared with April 2010
•   Viewing levels are up 18% on March 2011 and 26% on April 2010
•   Volume of deals increased by 17% compared with April 2010
•   Stock levels increased 22% compared with April 2010
•   New instructions increased by 19% compared with March 2011

Lesley Cairns, Head of Lettings at Hamptons, comments “The lettings market is booming at the moment; we’re particularly encouraged to see that stock levels are up on last year, providing the market with a much needed shot in the arm.  
“Despite the increase, demand is still outweighing supply, leaving tenants with little option but to renew their agreements at a premium.”

The monthly market update from Hamptons points towards a landlord’s market, with a number of key indicators working in the landlord’s favour.  Rent increases on renewals and viewing levels (18%) are both up on last year.  However the report shows promising signs that this will soften, with stock levels on the up (22%) and new instructions also up 19 per cent in April compared with March this year.

Lesley added: “It’s a landlord’s market at the moment and we are encouraged to see more and more landlords bringing their properties to the market, which should bring some balance back to the property sector.  

“In the meantime, there is stiff competition amongst tenants to secure quality properties in the best areas, some of whom are prepared to go to extreme lengths to differentiate themselves.”

Visit http://www.hamptons.co.uk/en-gb/Lettings/

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Hamptons International is one of the premier international residential agents offering an extensive portfolio of UK and international property. Services include sales, lettings, residential developments, property management and mortgages.
With more than 140 years’ experience, Hamptons offers unrivalled expertise and service in its market. Hamptons is headquartered in London and currently has an international network of over 85 offices. The company continues to expand both locally and internationally, positioning it as one of the most valuable residential property groups in the world.