The London ‘tax’ which seemingly makes everything more expensive has risen once again when it comes to residential property.
Rent fees across the capital have increased for the fifth quarter in a row and are now 16% up on the low seen in June 2009 according to new figures.
House prices in the heart of the capital have dropped since July and Q3 2010 has revealed that, despite the boom in the residential lettings London market, rents remain 7% below the market peak of March 2008.
Liam Bailey, head of residential research, Knight Frank, said this should give landlords confidence in the sustainability of the market.
He said: “Landlords should not become overly confident regarding the potential for rent rises in the short term. While further growth is possible, there are signs in the lettings market that the demand and supply balance is becoming less favourable for investors.”
“Demand for property rentals London has been very strong, with new applicant volumes between May and August running at around 10% above the levels seen in either 2009 or 2008.
“September saw this level decline, with new applicant volumes falling back noticeably by 14% compared to the level in September last year. The same was true of viewing figures, which again fell back in September after strong results throughout the summer period.”