Aug. 30, 2012
-- The residential lettings market in the prime areas of London has experienced a rise in rents by 6% in the second quarter of 2012. This upward trend was preceded by a 9.7% increase in rents during the first quarter of 2012, as compared to the same period in 2011. The consistent momentum has been construed as a result of the sturdy demand for rental accommodation in prime locations and the corresponding availability of high standard accommodation.
A report on the rental property market shows that the overall number of fresh applicants has increased by 6% against the first quarter. Another significant metric that has increased is that applicants looking for two bedroom apartments ranging from £1,000 and more per week rental properties have risen by 2%, compared to the first quarter.
It has been noticed that a healthier jobs market within the City, which is currently up by 15%, has largely contributed to this growth. Another factor adding up to higher rents is an 8% leap in tenants that work within the financial sector. Together these factors have pushed the average rental prices upwards while the highest weekly rent achieved has been reported at a whopping £1,950 per week. Rental increases for renewing tenants has also been tough because it has been rising steadily at 4.6%.
There has also been an increase in student tenants, particularly from South East Asia during the second quarter of 2012. An increase in the amount of indigenous British tenants also hints the decline in British buyers in the sales market by 12%, as potential purchasers are choosing to rent while they wait for the right property to come along.
However, rental growth for prime areas in London for 2012 is still being forecasted at approximately 2-4%.
for rental accommodation in London at affordable prices.