This year’s average 2% rise in rents in prime central London will be beaten in 2015 by a predicted 2.5% rise according to one of PCL’s top letting agents.
Zoe Rose, head of London lettings at Strutt & Parker, says the forecast increase is down to one thing - the stubbornly high property prices across the capital.
“This slow but steady growth [in rents] will be underpinned by the simple fact that there are still so many people out there that can't afford to buy a home in London and these people will continue to rent. The threat of rising interest rates rising will also play an important contributing factor,” she says.
Strutts claims to have 25% less property available for rent in central London than it did at this time last year, although tenant registrations are up 63% year on year and the agency describes its high end lettings market as “completely oversubscribed.”
Rose says one consequence of the modest slowdown in prime central London’s sales market - prices are currently beginning to dip after a year of solid rises - is that owners will defer their plans to sell until the market improves after the general election. Some owners will therefore let their houses and apartments, improving supply.
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