Top London rents fall to lowest level since 2000
Prime central London rents have dropped by 18% since last year as supply increases by almost 70%, bringing rents in some of London's most prestigious areas to a near decade low.
Falls are most pronounced at the top end of the market, over the £1,500 per week mark, which have fallen a record 11% over the last quarter, according to research by high end estate agent Knight Frank.
The report showed the drop in rents has been even more pronounced in prime outer London, where values have fallen by almost 20%.
Liam Bailey, head of residential research at Knight Frank, said: “Demand for rental property is strong by historic standards, particularly at lower price points. However, supply has increased by more than half over the past year, mainly as a result of developers and other frustrated vendors opting to put their properties on the rental market. It is this increased choice that is pushing down rents. “However, the drop is by no means uniform. For properties priced at less than £500 per week, rents have remained relatively resilient, falling by 6.7% over the past quarter and just 10.8% over the past year. Demand is more intense for these cheaper properties as a result of the stress on personal and corporate budgets. More expensive properties are proving more difficult to let unless landlords are flexible on price.”
But Bailey is bullish on coming months. He said: “We expect rents to stabilise over the next quarter, in many areas the recent declines mean that rents are beginning to offer good value. The excess of supply over demand should moderate as the year progresses.”
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