There have been falls in rents in some price ranges in London thanks to an oversupply of stock, according to lettings agency and property consultancy JLL.
On average prime central London rental values declined by 1.9 per cent during the second quarter of the year. Over the 12 months to Q2, values fell by 4.3 per cent - and JLL admits there were declines of eight to 10 per cent for higher priced properties.
“With weakened tenant demand, the increased supply of properties on the market is not being eroded. Available supply has also been boosted by owners electing to rent out their properties as opposed to selling them, given the diminished demand in the sales market” according to Neil Chegwidden, JLL’s residential research director.
He says tenants now have a strong bargaining position.
“Although most are choosing to remain in their current accommodation due to the upheaval and cost of a move, some are moving elsewhere to take advantage of these conditions” he adds.
The number of transactions in the 12 months to Q1 this year dipped by one per cent, although activity picked up slightly, to a similar level with Q2 2015.