For the second quarter in a row, London rents have stagnated or declined in prime central London while the outer boroughs have performed well. New hotspots such as Hackney, Acton and Lewisham have seen phenomenal growth eclipsing some of London’s most salubrious neighbourhoods such as Knightsbridge and Hyde Park which have seen rents fall this quarter.
The areas seeing the greatest growth are those likely to appeal to British tenants priced out of pricier areas. Almost all have great transport links, good housing stock and could be classed as rapidly gentrifying areas. The only central London area to see big rental price growth is The King’s Cross area which saw growth of over five per cent and is undergoing huge transformation and will soon be the home of several new corporations including the London headquarters for Google. Middle class favourites Fulham, Clapham, Battersea and Wandsworth also fared well with average rental price growth between two and five per cent.
Meanwhile, Knightsbridge saw rental prices drop by three per cent while Hyde Park saw drops of over six per cent. Interestingly, rental prices near the Houses of Parliament saw prices drops, too, perhaps indicating that members of parliament are tightening their belts in the wake of numerous expenses scandals.
“Renewed consumer confidence is reflected in today’s figures,” comments Marc von Grundherr, Lettings Director of Benham & Reeves Residential Lettings, “As the middle classes see earnings rise and feel more secure in their long term job prospects, they are going ahead and making their next lifestyle move. However, we continue to see rents fall in prime central London as the pound strengthens against many foreign currencies, lessening overseas tenants’ spending power. That said, capital values in these areas have seen the greatest appreciation of any London borough so our landlords are not unduly bothered.”
Marc von Grundherr, Lettings Director, Benham & Reeves Residential Lettings, Tel: 020 7435 9681
For further information (not for publication):
Lana Wrightman, LWPR, Tel: 020 8533 2277, Mobile: 07725 951 310, Email: firstname.lastname@example.org
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