12 Dec

Prime central London rents set for positive 2014

Prime central London rents set for positive 2014

Letting agents in London will be pleased to know that recent economic data has pointed towards a growth in rents for 2014, according Knight Frank's latest Prime Central London Rental Index.

Although rents in prime central London fell by 0.3 per cent in November, Tom Bill, associate for rental research at Knight Frank, expects a rise of 2 per cent in 2014 due to the creation of new jobs and economic optimism in the capital.

Mr Bill also suggested that the end-of-year lull in rental prices could be as a result of London's prime rental market's links with the health of the financial sector, which is still recovering from sector layoffs in 2010 and 2011.

However, Mr Bill stated that as these areas regain stability the rental market could begin to see some positive growth.

“The employment outlook in London continues to improve against a background of growth forecasts that many economists are revising upwards, including the Confederation of British Industry earlier this month," Mr Bill added.

Knight Frank’s forecast predicts that London will outperform other markets in terms of rent in the medium term. An increase of 18 per cent in expected between 2014 and 2018, whereas the rest of the UK on average is expected to record a 16 per cent rise.ADNFCR-1222-ID-801671781-ADNFCR

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