Primelocation.com: April 2008 Asking Prices
One of UK-s biggest property portals (the one that we use most frequently lately) PrimeLocation.com draws conclusions from the listings on the site. Here’s what they say about the asking prices in prime London lettings April 2008:
- Surge in stock levels (up 6.9% in April) and falling demand from the corporate lettings market seem to have impacted on rental values, forcing the largest monthly drop in rental prices since August 2005. The impact of the credit crunch has reduced the level of senior recruitment in many major corporations, softening a key component of demand for prime London rental properties.
- For homeowners, there is little pressure to sell while employment levels remain robust and many are sitting tight until they are better able to sell for the best price, thus restricting demand in the private lettings sector.
- The performance of the prime London lettings market in April varies depending on the specific region. While rental values in Central London have fallen overall by 1.4% in April, the Central/South West region (including Clapham, Wandsworth, Balham and Tooting) and North West London (including Hampstead, Belsize Park and St John’s Wood) continue to see rental values rise, with both regions showing a 1.0% increase in values since March 08.
- April’s fall in rental values bucks the trend of previous months. It remains to be seen whether this decline will be sustained going forward, or whether the increasingly vulnerable sales market will drive further demand into the lettings arena over the coming months.
Read the full report HERE (*pdf)
