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April 12, 2010

Demand for family homes drives London rent rises

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by Gill Montia

Demand for family homes drives London rent rises

Demand for large family homes is driving up rents in London, according to the latest data from Cluttons.

Rents in Prime Central London rose by an average 3.1% over the first quarter of 2010, with five-plus bedroom houses seeing the sharpest increase, at 7%.

Four-bedroom homes in the Capital also performed above average with a typical rise in rent of 5.8% during the first three months of the year.

However, two-bedroom flats and cottages nudged up just 1.9% and 1.7% respectively.

Cluttons names Central West and North West London as hotspots, with increases of 5.6% and 3.2% respectively, because they include family friendly areas such as Holland Park and St John’s Wood.

The firm’s residential lettings partner, Amelia Greene, says the rises are largely led by demand in areas where buying a good-sized property remains out of reach for many families.

She adds that the trend is also being driven by those needing to rent a home while they renovate their own property, and those who are awaiting the outcome of next month’s General Election before deciding whether or not to buy.

In related news, findaProperty.com’s March Rental Index showed a 0.7% increase in the average UK rent, compared to February, to £820pcm.

The second consecutive monthly increase meant that asking rents are now typically £16pcm higher than in January, easing the annual rate of decline to -0.8%.

According to the firm, the improving trend can largely be attributed to “accidental landlords” returning to the sales market and leaving stock levels at their lowest since October 2008.


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