This January is set to be the strongest month outside of the summer for lettings activity, fuelled by Christmas divorces and New Year starts, according to estate agent Marsh & Parsons.
A rental resurgence is set to occur at the start of this year, according to the estate agent, causing Prime London rental prices to incur a spike of 5% in the last 12 months, much higher than the 1.9% increase in the last year.
Based on the past three years, there has been a 34% monthly increase in the number of people letting property in January, as people use the month for a fresh start. Divorces and separations are the main causes for the increase, as is a large wave of corporate relocations at this time of year.
Patrick Littlemore, Director of Lettings at Marsh & Parsons, commented on the findings: “Come January, households will be picking up where they left off on big life decisions – be this downsizing, starting a new job, relocating overseas or even separating and moving out of the marital home.”
This increased demand in letting property has also meant that renters are opting for longer term tenancies too. The average tenancy length of a rental property in Prime London has grown 18% in the last year, increasing from 19 to 23 months on average.
“At a time when housing stock is in serious short supply, tenants are seeking out two-year contracts to give them peace of mind, and to put off the stress of searching for a new rental property,” commented Littlemore.