Rental costs have risen by up to 18% over the last year in London, Hamptons International reveals.
A short supply of housing stock is pushing an increasing number of prospective tenants into a bidding war, especially when it comes to one bedroom properties.
Lesley Cairns, regional lettings director for London at Hamptons International, says: There has been an increase rents everywhere and as a result many tenants are unable to be choosy.
For example, a recent applicant initially seeking a property in South Kensington for 550 per week has ended up taking a property for 1,000 per week – almost double their original budget.
As house prices continue to rise, so do rental prices, encouraging more and more people to renew their existing contracts.
New applicants registered were up 22% in February from January and 25% on last year.
Viewings were also up by 12% on the previous month in February, and this pattern is set to continue.
According to the latest survey by the Association of Residential Lettings Agency, the overall weighted average value of rented houses has risen by 10.7% from 385,000 to 426,900.