Prime central London activity in lettings market passive in Q2 2016

Elegant apartment building in Notting Hill, London.The prime central London activity in lettings market has gone quite in the Q2 of 2016. According to the report from JLL, the lettings market saw a reduction in demand and as a result a higher number of properties on the market. As potential tenants have more choice, this has led to fall in rental values in some price ranges. The excess of supply has led to pressure on rents across Prime Central London. On average, rental values decreased by 1.9% during the second quarter of the year.
Neil Chegwidden, residential research director at JLL, says: “The main feature of the current market is an oversupply of stock. With weakening tenant demand, the increased supply of properties on the market is not being decreased. Available supply has also been boosted by owners electing to rent out their properties instead of selling them, given the reduced demand in the sales market. Sources of new demand have been limited in 2016 and this has left existing tenants in a strong bargaining position. However most are choosing to remain in their current accommodation due to the uncertainty and cost.”

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