"I'll pay whatever it takes!"

Head of Lettings, Jane Jenrick talks about how lettings prices are vastly inflated in London’s commuter belt areas such as Surrey and the Home Counties

The house market is currently on fire in the UK and prices are surging – while this is not breaking news – lettings prices being vastly inflated in London’s commuter belt areas such as Surrey and the Home Counties, is reported on significantly less by the media.

Demand for more living space, larger gardens and less concern for the commute into work is driving the lettings market just like the sales market.

In recent weeks, we have let family homes in prime areas such as Cobham, Esher and Weybridge for 25% higher than the outgoing tenants had paid. We have corporate families relocating into the UK who are simply unable to find a rental property in their desired area and close to chosen schools – often one of the top priorities when choosing a home. During a best and final offers bidding process one potential tenant just replied, “Whatever the highest offer is, we will offer £500 a month more!

In another example of this magnified market, a house on St George’s Hill in Weybridge was previously let achieving £6,500 rental per month; it was relaunched to the market at £7,500 per month drawing in multiple interested parties and so went to sealed bids. The new let we agreed was at £9,000 per calendar month – a huge 38% increase. We have never seen a lettings market this frenetic.

Author:
Jane Jenrick, Head of Lettings 

jjenrick@johndwood.co.uk