London landlords warned over ‘too good to be true’ rent promises from agents

London landlords warned over ‘too good to be true’ rent promises from agents

0:02 AM, 3rd August 2023, About 9 months ago

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A lettings firm says private landlords in London need to be wary when dealing with agents who make enticing promises of rent increases.

Hello Neighbour warns that, on average, there is a significant 15% drop from the initial listed rent price compared to what is agreed upon by the tenant.

And in some London postcodes the rent price falls are much higher – for example, up to 40% in the EC postcode.

The firm says that high street lettings agents are over-inflating rent prices, potentially leading to misleading expectations for landlords.

‘Common practice of over-inflating a rental price’

Hello Neighbour’s chief marketing officer, Marc Schaller, said: ” Landlords should be careful about ‘too good to be true’ promises of rent increases.

“There appears to be a common practice of over-inflating a rental price at the point of initial listing, presumably to win a landlord’s business.

“Often a few days after a property has begun being marketed, the rental price is then reduced.

“Areas with the highest drops in price are in central, south west and north west London.”

He added: “Our data shows us that there is on average a 15% drop from the initial listed compared to what is actually agreed as the rental price by the tenant.

“We hear this time and again from landlords that have switched from high street agencies.”

Received nearly 100 viewing requests per property

The firm also reports that it received nearly 100 viewing requests per property from potential tenants, while the BBC reports that the national average is 20 requests.

However, it appears that tenants are also looking further afield for a rented home – which is leading to rent prices falling.

Mr Schaller said: “We are seeing the highest number of viewing enquiries in Greater London areas such as Enfield, Redbridge, Romford and Kingston upon Thames.”


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