Residential rents down 15% across London
London residential rents fell by as much as 15% last year due to new properties flooding the market, according to estate agent Hurford Salvi Carr.
The agent’s 2008 Residential Review said that despite rising demand, the levels of over-supply have pushed rents down by an average of 9%, with Docklands rents decreasing by an average of 15%.
Sales transactions were down by more than 60% at the end of the year, but have reached the bottom of the market the agent claims, predicting that the level of sales will start to increase again this year.
According to the report, average house prices have dropped by 15% across the Midtown, City and Docklands areas of the capital, with the biggest drops again in the Docklands, where prices have fallen by 17%.
The City has seen prices fall by 12%.
HSC said the Docklands has seen a faster rate of price falls due to a weakening of demand from owner-occupiers.
The report says: “As we enter 2009 with reduced land values and residential prices, and with banks putting pressure on existing landowners, there are real opportunities emerging for cash-rich individuals and corporate investors to take advantage.”
The agent predicts that prices will continue to fall by around 5% in the first half of 2009, with rents set to fall a further 10%.
From – Commercial Property Intelligence
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