London tenants in bidding wars for properties

News Category: Industry News

Well-paid bankers are pushing up rental demand once more in London’s Canary Wharf.

Benham & Reeves is reporting a 34.7% rise in new tenant registrations since this time a year ago in the area. The availability of properties is 14% down.

Last year, the lettings-only firm covered Canary Wharf from its nearby City and Docklands office, but it opened a new branch in Canary Wharf two months ago because of the demand. It is the company’s tenth office.

Benham & Reeves is also reporting that where tenants are renewing their tenancies, rents are jumping by between 17% and 23%. On new tenancies, rents are up by an average of 19%.

Meanwhile, on the other side of London, WA Ellis is reporting a flood of tenant applications.

Partner Lucy Morton said: “Bidding wars have become the norm again.

“Properties newly launched on to the market are being viewed and secured within hours of coming on. Last Wednesday we showed a two-bedroom property on Kings Road with five other prospective tenants viewing it at the same time. Our letting was agreed within ten minutes of the viewing, the holding deposit was paid by credit card and five minutes later the landlord received other offers.”

She said many tenants are staying put and paying more just to keep the property they are already in. “Our average renewal rent is currently 8% more than they were paying.

“Tenants are increasingly paying over the odds in order to be able to stay on. A client recently decided to sell his property at the end of the current tenancy and the tenant managed to persuade him to grant him a further year by paying a 40% increase in rent.”


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