Tenants are resorting to making sealed bids in order to secure rental properties in London, Knight Frank reports.

The estate agency says that over the past three months it has seen a 50 per cent rise in tenants trying to outbid each other through this type of blind bartering mechanism.

It says that a lack of properties coming onto the market is to blame.

Between 2016 and 2019 the agency chain has seen a 23 per cent increase in the number of tenancy renewals, exacerbating the lack of supply with fewer new properties entering the market.

But over the year to January the number of new prospective tenants in prime central London branches increased by 33 per cent compared to the previous  12 months. 

The number of new rental listings in London declined by 15.5 per cent in 2018, and then increased 4.6 per cent last year. 

The ratio of new prospective tenants to rental listings currently stands at 6.1, up from 4.7 in 2018.

Regional partner David Mumby says: “Once extremely rare in the rental market, every office across our prime central London network is now reporting a pronounced increase in sealed bidding. 

“Without doubt the increase in demand from the tech sector and limited options for tenants are driving demand at a rate we haven’t seen for years.”

Head of London residential research Tom Bill adds: “Landlords have faced a succession of tax changes in recent years, which has squeezed supply. “The ultimate impact of such measures has been to push rents higher and add to affordability pressures for tenants.”