London could be set for 2012 rental slide
London’s rental boom could be on the wane as a new market report revealed a slide in lets towards the end of 2011.
Agency Cluttons said that rents fell by 0.4% in the final quarter of last year, after a 10.3% rise since the first quarter of 2008.
The severe supply shortage, which caused the rental surge, is now readjusting, which is causing the falls, says Cluttons.
Lynn Hilton, partner for residential lettings at Cluttons, said: “The remarkable growth in rental values seen last year could not continue and this correction in values will bring 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 tenants will undoubtedly welcome increased choice and negotiating power.”