THE RISE IN LONDON LETTING MARKET
SEALED BIDS ON THE RISE IN LONDON LETTING MARKET
With London’s lettings market at an all-time high, Hurford Salvi Carr reports a 20-30% increase in the number of sealed bids used to secure a lease on prime London property. Hurford Salvi Carr, which specialises in property in the City and Docklands areas, suggest that some properties are attracting an average of 5 or 6 sealed bids, often driving the rent way above the original asking price.
Over the last year, average prices of prime London property to rent have risen sharply to reach record levels of up to 20%. Coupled with the shortage of supply, renters are resorting to more pro-active bidding tactics in order to secure the property they want.
Kari Trajer, Lettings Manager at Hurford Salvi Carr’s City office, comments, “We are finding that areas such as Clerkenwell, Barbican and Bloomsbury are attracting a high proportion of sealed bids. One and two bedroom properties are particularly popular with young professionals willing to pay a premium to live in a lively area with lots of shops, bars and restaurants which is also not too far from where they work. When a number of parties are interested in the same property, we find the fairest thing to do is accept sealed bids, although in some instances bidders can offer preferable terms to the landlord such as six month’s rent up front in order to secure the lease.”
In the Docklands areas, particularly Canary Wharf, a high proportion of all lettings are corporate. Large companies are often in a position to outbid private tenants pushing rental prices even higher. Mason Brooks, Lettings Manager at Hurford Salvi Carr’s Docklands office comments, “In Canary Wharf, the types of properties that are particularly popular are those with the best skyline or river views. Penthouses are continually popular and it is properties like this that attract the most interest from a larger number of potential tenants.”
In addition to the increase in sealed bids in the lettings market, the length of time a property is actually on the market for is becoming less and less. Agents have lengthy waiting lists to satisfy and many properties are being let almost the minute they become available such is the shortage of supply. Potential tenants are going to extra lengths to ensure they sign on the dotted line before anyone else, including taking time off work, meeting lettings agents out of hours and even befriending agents (albeit fair-weather friends!) in order to be the first for tip-offs on up coming properties.
“As long as the current shortage of lettings continues, the professional use of the sealed bid is bound to increase since it provides a fairer and more controlled way of securing tenancies,” comments Kari Trajer. “If the London lettings market remains this buoyant, I envisage the use of sealed bids increasing by 20% in the next 12 months.”
With London’s lettings market at an all-time high, Hurford Salvi Carr reports a 20-30% increase in the number of sealed bids used to secure a lease on prime London property. Hurford Salvi Carr, which specialises in property in the City and Docklands areas, suggest that some properties are attracting an average of 5 or 6 sealed bids, often driving the rent way above the original asking price.
Over the last year, average prices of prime London property to rent have risen sharply to reach record levels of up to 20%. Coupled with the shortage of supply, renters are resorting to more pro-active bidding tactics in order to secure the property they want.
Kari Trajer, Lettings Manager at Hurford Salvi Carr’s City office, comments, “We are finding that areas such as Clerkenwell, Barbican and Bloomsbury are attracting a high proportion of sealed bids. One and two bedroom properties are particularly popular with young professionals willing to pay a premium to live in a lively area with lots of shops, bars and restaurants which is also not too far from where they work. When a number of parties are interested in the same property, we find the fairest thing to do is accept sealed bids, although in some instances bidders can offer preferable terms to the landlord such as six month’s rent up front in order to secure the lease.”
In the Docklands areas, particularly Canary Wharf, a high proportion of all lettings are corporate. Large companies are often in a position to outbid private tenants pushing rental prices even higher. Mason Brooks, Lettings Manager at Hurford Salvi Carr’s Docklands office comments, “In Canary Wharf, the types of properties that are particularly popular are those with the best skyline or river views. Penthouses are continually popular and it is properties like this that attract the most interest from a larger number of potential tenants.”
In addition to the increase in sealed bids in the lettings market, the length of time a property is actually on the market for is becoming less and less. Agents have lengthy waiting lists to satisfy and many properties are being let almost the minute they become available such is the shortage of supply. Potential tenants are going to extra lengths to ensure they sign on the dotted line before anyone else, including taking time off work, meeting lettings agents out of hours and even befriending agents (albeit fair-weather friends!) in order to be the first for tip-offs on up coming properties.
“As long as the current shortage of lettings continues, the professional use of the sealed bid is bound to increase since it provides a fairer and more controlled way of securing tenancies,” comments Kari Trajer. “If the London lettings market remains this buoyant, I envisage the use of sealed bids increasing by 20% in the next 12 months.”
© 2008 Hurford Salvi Carr
[ + Sitemap ]
