Primelocation.com Prime Index May 2009
*Knightsbridge
The latest Primelocation.com Prime Index for May 2009 shows that prime London lettings market remains a tenants’ market thanks to an excess of supply over demand.
Stock levels were up by 125% compared to April 2008, and prices fell by 18.29% year-on-year and by 1.46% over the month.
Andrew Smith, Primelocation.com’s Head of Research, comments: “Rental values remain depressed due to high supply levels, which continued to rise over the month. It remains to be seen whether the gradual improvements in the sales market will encourage ‘reluctant landlords’ to cut their losses and return to the sales market. The recently announced plans to introduce licensing for landlords may hasten that process as homeowners baulk at the increased administrative burden governing the rentals market.”
Prime London Lettings
- Weekly rental values have dropped for the 13th successive month since March 2008 and are now 1.46% lower than March 2009.
- For the third successive month, all five prime London regions have seen a decline in weekly rentals. With stock levels increasing by 125% compared to this time
last year, all the regions in London are hit hard, especially South West London (-1.41%) and Islington, City & Docklands (-2.46%).
- Annualised price changes continue to fall and are now at their lowest since January 2005, with weekly rents 18.29% lower than this time last year.
