New research just produced by the Association of Residential Letting Agents (ARLA) shows the number of fresh tenancy agreements being completed in Q3 has dropped year on year. The end of the summer period is always a busy time for new tenancies as potential letting applicants take advantage of the hot weather and longer evenings to undertake property searches.
The number of new AST agreements signed up in Q3 always experiences a further boost, due to a number of graduate programmes starting in August and September.
Despite positive seasonal factors, the number of London agents completing 10 or more new tenancies in Q3 has dropped by 10% from 81% in 2011 to 70% this year. Any fall in rental yields across the capital could have a serious impact on an already difficult buy to let financing market as UK lenders continue to assess the rent achieved, when approving mortgages
The data concludes that the average number of tenancies signed in London agents' offices was 31 the whole quarter.
This dramatic London fall comes as agents elsewhere in the country report a very different picture. Agents in the rest of the UK witnessed higher than average signings with an average of 38 new tenancies recorded. There was an average of 34 in the rest of the South East.
Demand for rental property still remains high across the board with over 55% of ARLA members reporting a surplus of tenants than properties available.