The rental market in central London is undergoing a ‘correction’, say agents.
Cluttons says that rental falls are now saving central London tenants £572 a year.
The agency says that prime central London rents fell by a further 0.6% in the first quarter of this year from £1,043 per week to £1,032.
Rents have now fallen two quarters in a row, following annual growth of 5.6% per year over the last five years.
Lynn Hilton, partner for residential lettings at Cluttons, said: “The remarkable growth in rental values seen last year could not continue and this return to the trend trajectory in values is bringing the market back to a more stable level.
“While there is considerable economic uncertainty, we don’t anticipate a drastic reduction in rents as demand is still high, but central London’s tenants will undoubtedly welcome increased choice and negotiating power.”
Knight Frank agreed that central London rents have been falling six months in a row, since last October, but said rents are still 1.2% higher than a year ago.
The firm blames poor job prospects in the City and companies slashing their relocation budgets.
Comments
So let me get this straight: average property prices in 'Pwime Central London' are £2M (well, they were before George popped the bubble last month....), yet rents are currently averaging £50K per year.
That's a wopping 2.5% GROSS rental yield, before allowing for voids, recovery costs, maintenance, insurance, management fees....
Much safer than getting 3% in an instant access account! And these are supposed to be the richest, 'savviest' investors in the world. No wonder we're f%$£ed.
0.6% ...... seriously?? Have these people nothing better to do?
Can you really imagine someone able to spend £4.5k a month quibbling over a tenner?
No - what this means is that there is perhaps a little more stock.
Rents are NOT falling - asking prices maybe as too many agents overvalue to get the instruction and tenants are NOT as stupid as the greedy Landlords who appear to fall for the bull****
Or you have the likes of winkworths over inflating rents and landlords expectations!
Certainly not the case here in south west London.
Falling rents? Central London? We are very far from seeing this where we are in Hackney, Shoreditch and Islington...
Could this be the result of agents competing?
Our local competition keeps telling tenants they can get the same properties cheaper than we can, etc.