There is a development towards both tenants and landlords looking for long-term leasing contract because of a continuing demand for letting properties in the capital.
Stern competition for rental properties causes an increase in numbers of tenants who are seeking for longer contract so they can secure an accommodation for about 18-24 months. Simultaneously, landlords are eager to be in agreement as longer-term lease result in lesser void periods.
A lot of landlords can make use of long-term letting contracts to avoid tenancies from finishing at a time when demand is generally low; like the winter months for instance. It is far favorable for a contract to end at some point on summer months when there is larger demand for letting properties.
Long-term letting also enables better financial planning for landlords, as it gives them a better stability and an illustration of their potential rental earnings.
This set-up can provide both the tenants and the landlords a sense of security and peace of mind. Landlords could have a definite income flow and lesser void periods, as well as keep good tenants in place for a longer period of time. In addition, the tenants can also have the assurance that they alone occupy the property for a long time.
By organizing contracts to conclude during months when demand is high, landlords can utilize longer-term lease in order to avoid periods of vacancy during Christmas season when demand is typically low.
Moreover, with the hugely anticipated numbers of graduates coming to London, the autumn months are a big chance for landlords to acquire leaseholders and securely prepare long-term letting revenue.