Growth of rental market in Prime London cools down

prime-LondonThe London prime rental market is starting to cool after a year of record breaking growth with rents either stable or slight growth for a third quarter in a row. According to Benham & Reeves Residential lettings, this follows last year 2015 which saw record growth for the first two quarters before finally slowing as the market paused to absorb the changes; many parts of prime central London properties had falling rents, reflecting the demand increase in the inner suburbs. However, it is anticipated that this fall is likely to be temporary.

Marc von Grundherr, Benham & Reeves Residential Lettings, says: “This is a much needed pause for breath after such huge gains in rental values. Unfortunately for tenants, this pause may only be temporary. With increasing restrictions on buy to let, landlords will be exiting the market, leading to a drop in supply in the face of a growing population. Over the long term, rents will certainly go up.”

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