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London Rental Market

Asking property rental prices in London have begun to fall, as a glut of new property swamps the market. Areas that have been particularly dependent on tenants working in the financial services sector such as the City of London, Tower Hamlets (incorporating Canary Wharf) and Kensington & Chelsea, have seen the biggest annual falls in asking rents. Some areas such as City of London have seen their average rental asking price come down by up to 11.7% (=£221). In contrast, London’s more affordable boroughs have seen their rental asking prices rise by up to 6.7% (=£74). London average monthly rental price now stands at £1,669.

London boroughs overview, click to enlarge the screenshot of the report.

Andrew Smith, Head of Research, comments:

“The London rental market has been heavily touched by the recent turmoil in the city. Areas that used to historically be populated by city workers either renting by themselves or occupying a corporate let have felt the pinch the most. In contrast, more affordable locations usually situated in London’s outer boroughs have benefited from rental growth. We attribute this to tenants willing to expand their area of property search to achieve more affordable rents and these areas to be less reliant on city workers.”

Best & Worst performers, click on it to enlarge screenshot of the report.

Download the full report HERE.

This entry was posted on Thursday, February 26th, 2009 at 5:02 pm and is filed under Rent, Websites. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.