Third of lets agreed before tenant moves out

Mortgage Introducer

June 26, 2015

Last year a quarter (27%) of new lets were agreed with no rental void, highlighting the competitive nature of the rental market this year.

In London this applied to over half (51%) of new lets, up from 41% last year, due to strong level of demand in the capital.

The typical let agreed was £35 more a month than the asking rent.

David Fell, research analyst, said: “In larger rental markets, more new lets are being agreed well in advance of the current tenant leaving.

“As a result we’ve seen void periods fall, with a growing number of landlords having a new tenant lined up over a month before their existing tenant leaves.

“While leaving some time for maintenance between tenancies is advisable, increasingly there’s just a matter of hours between a tenant moving out and one moving in.”

He added: “The buzz around a new property coming onto the market is usually the landlord’s best chance of securing the tenant willing to pay the most rent.

“In more competitive markets, the first tenant to view a home is often willing to pay a small premium to ensure the landlord takes the property off the market and that no further viewings take place.

“Proactive tenants who are looking to move quickly are frequently willing the pay the most.”

If a deal was not agreed during the first week of marketing landlords were increasingly receptive to offers as they didn’t want to lose out on rent. Indeed, in 98% of cases where a landlord had an offer accepted an offer below the asking rent the property was on the market for more than a week.

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