Prime central London residential rents up 6% in second quarter of 2012
01-08-2012
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It has found that overall the number of new applicants increased by 6% compared to the first quarter.
Applicants looking for two bedroom apartments priced at over £1,000 per week have increased by 2% compared to the previous quarter.
This growth is being partly driven by a healthier City jobs market, up 15%, which also resulted in an 8% jump in tenants from the financial sector.
Together this has increased average rents with the highest weekly rent achieved reaching £1,950 per week. Rental increases for renewing tenants has also been strong at 4.6%.
‘Increased demand driven by a more active financial services sector matched by high quality stock has seen rents grow strongly in the second quarter,’ said Lisa Hollands, head of residential at EA Shaw.
During the second quarter there was an increase in student tenants, particularly from South East Asia. There has also been an increase in tenants from the UK, reflecting the decline by 12% in British buyers in the sales market explained by potential purchasers choosing to rent while they wait for the right proerty to come along.
EA Shaw’s research covers an area of prime central London including Covent Garden, Soho, Fitzrovia, Bloomsbury, St James’ and the City fringes.
