A DROUGHT of available residential property in London is propping up prices and rents, a survey in the capital revealed yesterday.
June’s stock for sale was down 20 per cent on the previous year, while there was a 30 per cent fall in available rental properties, according to estate agents Douglas & Gordon.
“The shortage of available properties and increasing rental prices in London is encouraging tenants to stay put,” commented director general Virginia Skilbeck.
The number of tenants choosing to terminate their current tenancies was down almost 30 per cent in June compared to the same time last year, she said.
“Our figures show long term tenancies are becoming more commonplace and we expect to see the number of tenancies ending each month to decline further.”
June and July are typical peak times for families to move, coming ahead of the new school year in September.
“With many families choosing to remain in properties in their chosen catchment area, there is currently a severe shortage of suitable family homes in London,” Skilbeck said.
The average price of a one bedroom flat in the capital has reach £368,333 in the first three months of the year, according to Douglas & Gordon – up 1.8 per cent from £361,667 at the end of last year.
“Buyer demand continues to outstrip the supply of good properties in London, ensuring prices remain steady,” added Ed Mead, director of Douglas & Gordon.
“Most of the properties sell because they have been priced realistically.”