12 May

Growth of houses to rent in London outweighs house prices

Growth of houses to rent in London outweighs house prices

Property to rent in London has experienced more price growth than houses for sale in London, it has been revealed.

Houses to rent in Greater London saw average rent rates rise by 16 per cent in 2010, according to Savills.

The estate agents reports that prime property to rent in London has seen rents increase by 3.4 per cent in the first quarter of 2011, outpacing the 2.8 per cent growth in Q1 in property values.

Demand for rental homes continues to rise as first-time buyers struggle to get onto the property ladder.

Savills predicts that the private rented sector will account for one in five of all households by the end of 2016.

Yolande Barnes, head of the company's residential research, says the London rental market will meet expectations of healthy growth in the private rented sector.

She explained: "The rises seen so far this year support our forecast for eight per cent growth this year in prime London.

"Our prognosis for the private rented sector as a whole remains extremely bullish."

Houses to rent in London may produce high rental yields for landlords looking to invest in the capital.ADNFCR-1222-ID-800530987-ADNFCR

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