Agent says Prime London rents to rise 10% in 2015

Central London agency Marsh & Parsons says rents in prime areas will rise 10 per cent next year. 

The number of corporate tenancies has grown 14 per cent in 2014 and burgeoning demand for corporate lettings and relocations will ensure continued expansion of this sector next year, says the firm, which has 22 offices across central London.

“The rental market will be where much of the action takes place in 2015. Those relocating to the capital for work are now biding their time before purchasing their own portion of London property – until question marks surrounding additional property taxes are erased” says managing director Peter Rollings. 

“This will push demand in the corporate lettings sector even further, and the biggest rental increases are predicted to be among one or two-bedroom flats” he says.

He also warns goverrnments - existing and future - not to intervene negatively in the private rented sector  

“Supply of rental properties looks set to be sustained, but any regulatory changes to tenancy fees under a new government could inflate rents artificially.  The powers that be need to ensure that landlords are not spooked out of the market by unnecessary layers of legislation, and that aspiring property investors don’t take their money elsewhere” he warns.