For the second quarter in a row, London rents have stagnated or declined in prime central\u00a0London while the outer boroughs have performed well. New hotspots such as Hackney,\u00a0Acton and Lewisham have seen phenomenal growth eclipsing some of London\u2019s most\u00a0salubrious neighbourhoods such as Knightsbridge and Hyde Park which have seen rents fall\u00a0this quarter.<\/p>\n
The areas seeing the greatest growth are those likely to appeal to British tenants priced out\u00a0of pricier areas. Almost all have great transport links, good housing stock and could be\u00a0classed as rapidly gentrifying areas. The only central London area to see big rental price\u00a0growth is The King\u2019s Cross area which saw growth of over five per cent and is undergoing\u00a0huge transformation and will soon be the home of several new corporations including the\u00a0London headquarters for Google. Middle class favourites Fulham, Clapham, Battersea and\u00a0Wandsworth also fared well with average rental price growth between two and five per cent.<\/p>\n
Meanwhile, Knightsbridge saw rental prices drop by three per cent while Hyde Park saw\u00a0drops of over six per cent. Interestingly, rental prices near the Houses of Parliament saw\u00a0prices drops, too, perhaps indicating that members of parliament are tightening their belts in\u00a0the wake of numerous expenses scandals.<\/p>\n
\u201cRenewed consumer confidence is reflected in today\u2019s figures,\u201d comments Marc von\u00a0Grundherr, Lettings Director of Benham & Reeves Residential Lettings, \u201cAs the middle\u00a0classes see earnings rise and feel more secure in their long term job prospects, they are\u00a0going ahead and making their next lifestyle move. However, we continue to see rents fall in\u00a0prime central London as the pound strengthens against many foreign currencies, lessening\u00a0overseas tenants\u2019 spending power. That said, capital values in these areas have seen the\u00a0greatest appreciation of any London borough so our landlords are not unduly bothered.\u201d<\/p>\n
-ENDS-<\/p>\n