London Prime Property rents have fell by 1.3 pc

prime-propertyRents in the prime property markets of the capital fell by 1.3% in the third quarter of this year, leaving annual growth down 0.3%. Smaller properties continue to surpass larger ones across all locations in the commuter zone. According to the data from real estate firm Savills, properties with three or more bedrooms have seen just marginal growth or small falls over the same period, on comparing with the one or two bedrooms properties.

Lucian Cook, director of residential research at Savills, says: “This trend reflects a divide in the market between needs based renters who are looking for smaller properties and big budget tenants looking for prized properties, who are relatively scarce in the market. Looking forward, there is expectation among experts for the ongoing demand for prime rental properties in the suburbs and key commuter locations of the capital to continue. Professional couples and young families will continue to drive demand as they try before they buy, before committing to a purchase. A potential short term risk to rental values is high levels of stock coming onto the market as a result of increases in landlords, following the stamp duty changes introduced. The uncertainty caused by the EU result, shows that the trend will continue.”

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