21:41 PM, 10th February 2013, About 8 years ago 2
That ‘G’ word is back in town! Yes, boys and girls, Rental Gazumping in London is here and knocking on the front door of every potential tenant!
The former and current scourge of the property sales has transgressed over to the private lettings sector and is showing no sign of leaving.
Such is the massive demand for residential accommodation, private tenants have resorted to the tactic of increasing their offer above their fellow property pursuers.
In many scenarios, both letting agents and landlords have stated that tenants should submit a sealed bid offer to stand a chance of securing their new rental home.
Up until recently this was practically unheard of but due to Government austerity measures, students, migration increase, overseas property investors and the near impossibility of professionals, both young and old, struggling to purchase properties, this I’m afraid is our reality!
London has been and is ever increasing the destination of choice, predominantly due to the financial power of the City and as such the equilibrium of supply and demand is in fifth gear. In some areas, such as Clapham & Hackney, rents have risen significantly and in some cases by over 30%!
For example, the recent success of the London 2012 Olympics has driven up the rental prices in Stratford from £250 per week to near £400 per week … for a 1 bedroom flat!
Landlords, agents and tenants based elsewhere in the UK must be in shock and awe at what you’ve just read.
London, as always, is leading the explosion for rentals in the UK but it is closely followed by Birmingham, Manchester and Glasgow.
The days of ‘Ooooming and ahhhhming’ are well and truly over as rental properties are snapped up almost as soon as they become available on the rental property market.
As a result, many new and innovative property businesses are cropping up and are developing services solely towards this type of growing phenomena.
One such is an innovative property auction that blends the traditional concept with modern day social needs. The award winning concept is the UK’s first and only property auction rental site for landlords, letting agents and potential tenants.
So how does it work?
Well, in a nutshell, very easily. Vacant properties are uploaded and potential tenants can make a bid on how much rent they can afford to pay. At the end of the auction both parties pay a one-off commission on the final monthly rent.
With ‘gazumping’ on the increase the site is a more ethical way of obtaining the highest bid on your residential rental property, without the headache of receiving multiple phone calls. The service is user friendly, has outstanding customer service and is one of the few sites that displays properties in ‘real-time’, so if it’s on show it’s available (and vice versa).
They even reference check the potential tenants before they are allowed to make a bid. Although they focus on the London Private Rentals Sector, they are looking to expand to other cities around the UK.
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