There is little evidence that landlords are hoping to cash in on Olympic demand, with the vast majority focusing on keeping good tenants in place amid uncertainty over the job market and the wider economy, reports property consultants Cluttons.
Average rent increases of just 2-5% are being agreed at renewal, broadly in line with inflation, with some landlords agreeing to waive inflationary increases in order to retain quality tenants.
Tenants too are sitting tight, keen to renew contracts ahead of the Olympic Games this summer, amid concern over a shortage of accommodation during the Games and a possible hike in prices.
Lynn Hilton, partner for residential lettings, said: "There is some nervousness in the market from both landlords and tenants, with both parties keen to make compromises in order to renew contracts and avoid returning to the market.
"It is still unclear the extent to which landlords will benefit from high value, short-term lets over the Olympic period, but at the moment those who have good quality tenants in place are looking at the bigger picture and focusing on securing ongoing Shorthold Tenancy Agreements, thus reducing the risk of void periods."
SOURCE Cluttons
