Chestertons has announced record lettings results for the first half of 2018, claiming growth in market share and increased productivity.

The agency says that despite the number of available rental properties being 10 per cent lower than 2017, consistent with reduced supply across the lettings market, demand from tenants has risen 30 per cent year on year.

The firm has completed nine per cent more deals than last year.

It says the two main reasons for the drop in available rental properties are the flurry of recent tax changes affecting landlords, and the fact that more tenants are now choosing to extend their contract rather than move. 

Chestertons has seen a nine per cent increase in the number of tenants renewing existing tenancies, meaning fewer rental properties coming back to the market.

“Over the last quarter, we have seen rent levels start to stabilise and, in some areas, increase. Given the scarcity of available properties in some areas, we could see rents start to rise again over the next few months which, taking into account the fall in capital values, could lead to attractive yields for landlords” suggests Richard Davies, head of lettings at the company.

The gross yields currently reported by Chestertons branch network range from 2.0 per cent in Knightsbridge & Belgravia to 4.7 per cent in Canary Wharf.