The London rental market has had a busy summer and levels of demand are high. Increased property prices in the sales market combined with a lack of rental stock, has prompted many tenants to lock into their contracts for longer. Our latest figures now show that the average length of tenancy agreed rose to 20 months in Quarter 3 2014, up from 16 months for the same period a year ago.
Recent Land Registry figures report a 36% increase in property prices over the last three years and we've subsequently seen many landlords take advantage of the favourable conditions and sell. The number of registered tenants at our branches rose by 11% between July and September this year. But unlike the sales market where stock levels have increased, the rental market has seen a slight imbalance between the number of registered tenants and the volume of new properties reaching the market. This has impacted on levels of stock, with the number of properties available across our London branches down 34% on last year.
Despite a shortage of stock, tenants remain price sensitive and we are yet to see any significant increases in rents. However, if stock remains at current levels and demand is sustained, prices could well edge higher in the coming months.
For more information about the London property market, read our Autumn property market analysis here.