According to research by Marsh and Parsons Estate Agents, central London has an oversupply of rented properties as the number of available homes to let in Kensington and Chelsea were found to be at an ‘unprecedented’ level and as competition has increased rent prices have fallen.

The estate agent reported that landlords found it difficult to fill their properties, especially in in these areas. It recorded an annual increase of over +70% in the number of properties to lease on its books, from 360 in August 2007 to 618 in August 2008.

Increased competition has also raised the standards that tenants expect from rental properties. In 2007 a tenant would view 4-5 properties before making a decision and in 2008 the number of viewings has increased to 12. Due to the high level of competition landlords have lowered their rents in an attempt to avoid costly void periods. In August 2007 the average rent was £525 per week compared to £450 in 2008, a fall of -14%.

Emilie Dawes, area director for Marsh and Parsons, told PIN: “I would expect the volume of properties available to remain high over the coming months as would-be vendors continue to struggle to achieve the price they want on the sales side, and this is a trend we expect to be repeated throughout London. However, we do usually see a sharp seasonal increase in the number of prospective tenants in September, therefore we may well see the oversupply of property in this sector of the market decrease, which should mean that prices remain stable or possibly even strengthen.”