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News: London sales and rental markets stall

Tue, 27 Mar 12

Average prime London rental prices fell by a further 0.2% in February and rents have now turned negative on a three-monthly basis, down 0.4% according to Knight Frank.

The current round of rental price falls relates to weaker conditions in the central London employment market, explains Liam Bailey, Knight Frank’s Head of Residential Research.

'The rapid rebound in rental levels between mid-2009 and late-2011, when rents rose by 26.9%, was driven by a revival of the central London economy, following the ravages of the credit crunch and global recession,' says Bailey.

'By October last year, rents had recovered all losses sustained in 2008 and early 2009, and hit an all-time high at 1.8% above their previous peak in March 2008.

'Further growth from here was dependent on continued demand-side expansion. But with job losses in the City beginning in Q3 last year, demand began to fall back a little in October.'

Source: The Negotiator

 

See also: London Rents, London Home Prices

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