An oversupply of rental properties across Central London combined with tenants who are looking for more affordable rental property is contributing to an ongoing correction in average rents according to Cluttons.

Lynn Hilton, Partner for Residential Lettings at Cluttons, said: “Affordability is now central to the performance of (central) London’s rental market. Landlords cannot achieve the rents they were getting twelve months ago and must now be far more realistic with rent reductions of around 15-20% in order to secure a let.

“Despite a small turn around during the third quarter, our evidence shows that rents have begun retreating once more, highlighting the need for landlords to be realistic in their approach and expectations. Sensible landlords need to accept these reductions to minimise void periods. Greater choice of rental property across Central London is no doubt adding to tenants’ bargaining power.”

Effectively landlords wishing to let their properties and prevent them from remaining empty over the Christmas and the New Year period should consider a reduction of 15-20% off current asking prices as tenants are increasingly price-conscious and are renegotiating hard on new agreements or at renewal and are using the greater choice of rental property as a bargaining tool.