Severe stock shortages and high rental demand will continue to push up rents in the prime London rental market, says Savills.
Average rents in central London grew by 11.5% in 2010, according to latest analysis from the company’s research team. As a result, rents are forecast to grow this year by an average of 8% across prime London.
This compares to a 1% growth forecast for capital values across London this year.
Savills says North London outperforms everywhere in the capital, where rents rose 17.6% last year, but that all areas show growth.
Jacqui Daly, director of Savills residential research, said: “The dynamic of constrained mortgage markets, of buyers adopting a ‘wait and see’ approach, a lack of new-build supply, a return of corporate tenants, and the reduction in accidental landlords, means that strong rental growth will continue to characterise the market in 2011.”
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