London agent says supply outstripping demand

Former ARLA president and W A Ellis letting agent Lucy Morton says the sector is sporadic in central London with supply outweighing demand in various areas of the market.

This backs up comments from other London agents in the recent RICS quarterly survey.

Help to Buy and the ongoing strength in the sales market has prompted aspiring first time

buyers to leave the private rented sector. As a result, rents are falling as we seem to have reached an affordability ceiling even though stock levels remain relatively stable says Jeremy Leaf in Finchley.

Demand is being met by supply, and therefore little rental growth notes Savills' Simon Aldous, while in Wimbledon John Collard of Robert Homes & Co says: Stock far outweighs demand still, and until that shifts the cycle remains static.

Morton, whose agency covers Knightsbridge, says there has been increased activity in the sub-£1k per week price range and particularly in the family houses market.

Corporate relocation enquiries are also on the increase, with relocation consultants eager to find blue chip clients the right property before the summer. Our figures for May-to-April 2013-14 show that 77 per cent of our tenants came from outside the UK she says.