Reports over the weekend suggest that London lettings agents are sufficiently concerned about falling rental values in the capital to have called an urgent crisis meeting to try and combat the situation.

Despite high prices, the sustained period of low interest rates has encouraged more first time buyers into the market, due to the relative affordability of buying in comparison to renting. This situation has also been driven by increasing numbers of investor landlords buying property to let in the capital. As a result a smaller number of tenants are being served by an increasing number of properties, with the inevitable result that rental prices have fallen.

The situation has become so bad for some of London's leading agents, that around 20 of them are said to have met to discuss strategies for weathering the storm.

Aside from increasing the various sources of fees, the main thrust of the strategy that the agents are set to adopt involves restricting the number of properties that come on to the market. This will be done by rejecting properties that are either in poor condition or that are being offered by inexperienced landlords that are holding out too long for unrealistically high rents. This will help ensure a faster turnover of properties, thereby changing the perception that it is a tenants market.

Bill Borrett, Hamptons director, said: "We are all in the same boat. If a property is not in immaculate condition we have to tell the landlord to take a dramatic fall in rent, not just £10 to £20 a week, or we won't take them on. We have good properties which let in four days and other properties which sit empty for six months. We've never known this kind of market before."