‘Option to buy’ rental clauses now reappearing, says lettings agent

‘Option to buy’ rental clauses now reappearing, says lettings agent


Todays other news
Rental growth on renewals rose faster than new lets last...
Demand in the rental sector is cooling as more tenants...
More will spend longer in emergency homeless accommodation - claim...
77% of British students choose HMO accommodation over PBSA...
Growth Capital Partners has signed a binding agreement to invest...


A record number of tenancies have been agreed above £5,000 per week in London during the first four months of the year according to Tom Smith, Knight Frank’s head of super-prime lettings.

In total, 41 lettings transactions were agreed between January and April which was the highest figure on record for the first four months of the year, a traditionally less active time for the lettings market. 

It compared to an equivalent figure of 26 last year and 34 in 2017.

“While demand in the super-prime sales market has picked up over recent months, the finely-balanced political backdrop means the lettings market has also had an unseasonably strong start to the year” says Smith. 

The number of prospective tenants viewing properties above £5,000 per week has also been rising. 

The figure was 32 per cent higher in the year to April 2019 compared to the previous 12-month period, Knight Frank data shows.

Meanwhile the rolling annual total for super-prime lettings was 145 in April and 146 in March this year, which was the highest figure recorded for six years.

“Renting affords our clients the luxury of flexibility” says Smith. “The uncertain political situation also explains why we are seeing the re-emergence of super-prime tenancies with ‘option to purchase’ clauses written into the contract, so renters can effectively ‘try before they buy’.”

The agency says underlining the relative strength of the super-prime sales market, there were 38 sales in London above £20 million in 2018, which was the highest figure since 2014.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Harrods Estates has announced ta new assistant manager of lettings...
The Prime Central London rental market is performing more strongly...
Douglas & Gordon has appointed Catherine Darbon as Head of...
It’s calling on all agents to support their local food...
It now progresses to the so-called Report Stage....
The BoE has come to a decision on interest rates...
The House of Lords committee stage now continues until May...
Recommended for you
Latest Features
Rental growth on renewals rose faster than new lets last...
Demand in the rental sector is cooling as more tenants...
More will spend longer in emergency homeless accommodation - claim...
Sponsored Content
With less than a month to go until the UK...
The UK government has implemented 16 financial sanctions rule changes...
The owners of the Rentman software application (for property Lettings...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here