Savills is urging its landlord clients to be more flexible in order to meet the new expectations of younger renters in an age of short-lets and rapid changes to the lettings landscape.
The request comes at the end of the agency’s latest report on prime lettings markets, mostly in London but also beyond, where rent reductions have been seen in many areas as a result of high levels of supply.
“Landlords will need to bear the current climate and supply in mind, remaining flexible on price and focused on the condition of their properties to remain competitive with the new build stock” says the agency.
“The rising popularity of short-term lets means tenant's expectations have changed – to appeal to a younger demographic landlords should also consider what they include in a rental package and remain flexible on terms” the agency continues.
Savills says rents in prime markets outside London have fallen some 1.5 per cent over the last year, with those properties letting quickest and at the best prices have been those in the highest condition and at the most convenient locations, especially new build units and those near prestige and particularly international schools.
The prime London market continued to soften during the final quarter of 2017 leaving rents 3.1 per cent down over 2017 as a whole. “A high level of supply has continued to hold back rents, with tenants remaining cost conscious in the current economic climate” says the agency, which takes some comfort from pointing out that while rents are still going down they are doing so at a slower pace than in the recent past.