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SEALED BIDS ON THE RISE IN LONDON LETTING MARKET

Posted on Oct 21, 2010 | 0 comments

With the stock of rental properties across central London at an all time low, Hurford Salvi Carr are seeing a sharp increase in tenancies being agreed via sealed bids from the numerous applicants and corporates desperate to secure the right properties.

There has been a seasonal surge in demand for rental properties in September coupled with a lack of stock which has been feature of the central London lettings market for much of 2010.

The result of this busy period is an Autumn market with acutely low stock levels. In October, the firm’s Clerkenwell office has agreed 40% of tenancies by offering interested parties the opportunity to offer their one time best and final offers confidentially by a set date and time.

Landlords are often left in the enviable position of being able to achieve above asking price rents for their properties as well as the choice of the most favourable tenancy terms. For example, if two bidders are offering the same rent, the winning party will be the one that offers a minimum of a year’s tenancy with no break clause. Another attractive bonus for a Landlord would be rental payments made upfront for six months city-pavillion

Angela Kelly, Lettings Manager at Hurford Salvi Carr’s Clerkenwell office, comments, “We are finding that areas such as Clerkenwell and Barbican are attracting a high proportion of sealed bids. One and two bedroom properties are particularly popular with young professionals willing to pay a premium to live in a lively area with lots of bars and restaurants which also offers a quick early morning walk to work. We also have numerous Corporate tenants wishing to house their international staff in the Central London to ensure their secondees have the best of both worlds – close to work and close to London landmarks.

Interestingly, not all of our clients want us to ask prospective parties for their best and final offers. Many prefer to act on a ‘first come first served’ basis and give the opportunity of the first person who viewed the property the chance to rent it.”