The rental market in central London is undergoing a ‘correction’, say agents.
Cluttons says that rental falls are now saving central London tenants £572 a year.
The agency says that prime central London rents fell by a further 0.6% in the first quarter of this year from £1,043 per week to £1,032.
Rents have now fallen two quarters in a row, following annual growth of 5.6% per year over the last five years.
Lynn Hilton, partner for residential lettings at Cluttons, said: “The remarkable growth in rental values seen last year could not continue and this return to the trend trajectory in values is bringing the market back to a more stable level.
“While there is considerable economic uncertainty, we don’t anticipate a drastic reduction in rents as demand is still high, but central London’s tenants will undoubtedly welcome increased choice and negotiating power.”
Knight Frank agreed that central London rents have been falling six months in a row, since last October, but said rents are still 1.2% higher than a year ago.
The firm blames poor job prospects in the City and companies slashing their relocation budgets.
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