Prime Central London tenants are increasingly moving into refurbished flats, London Central Portfolio data suggests.
From July to September newly let refurbs performed ‘best’ according to LCP, as rents stood 3.6% higher than anticipated.
In the past three months the number of properties to rent has trebled from 8,834 in the previous three months to 24,761, data from Lonres found.
Naomi Heaton, chief executive of LCP, said: “Newly refurbished properties, in areas with good transport links, continue to attract tenants willing to pay premium prices.
“The static picture for re-lets can be attributed to the growing negotiating power of tenants as stock levels have trebled, many of which are ‘not-so-new’ properties.
“However, with tenants often electing to ‘stay put’ rather than deal with the hassle of moving, this has been compensated by renewal increases, averaging 3.1%, from tenants in-situ.
“Landlords, therefore, should look to retain existing tenants if possible rather than re-marketing in the hope of achieving higher rents.
“They may also need to be open to carrying out remedial and upgrade works between tenancies to remain competitive at re-let stage.”
She added: “Across the rest of the year and into 2017, landlords may seek to recoup the increased entry and running costs due to the additional rate stamp duty and the forthcoming reduction in mortgage interest relief.
“This may lead to a further hardening of rents across the board. For tenants with the flexibility to move, now may be the optimum time to secure the best deals before landlords act to counter the tax headwinds.”