Prime rental real estate in central London has again become pricier, Benham & Reeves Residential Lettings says.
The company has recorded a 4 per cent uplift in property prices in many of the capital’s most prestigious neighbourhoods including Knightsbridge, Belgravia and Mayfair, in the fourth quarter of last year. In contrast, rents in Chelsea and South Kensington dropped significantly over that period.
While other neighbourhoods saw a rise in rents as a result of the growing demand from corporate clients as well as fears over the unrest in the Middle East, Chelsea and South Kensington did not benefit from those effects since they depend more on the domestic market, Benham & Reeves says.
Rental agents reported stagnation or only slight growth in rents for the majority of inner suburbs.
Neighbourhoods in the North, such as Hampstead and Highgate, saw a cool down in rents because of the low number of new builds. Many tenants prefer to move East where there are cheaper new developments.
Hackney and Greenwich were the two areas with the biggest capital growth in London in 2014. Rents there increased significantly over the past twelve months with new developments hitting the market.
The upcoming general election also has an effect on the London property market, according to Benham & Reeves, as many people prefer renting over buying now. The sales market is expected to stabilise after the election.
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