The rent on the real estate market in London continues to grow

On the real estate market of Central London continues to grow rents. From the beginning, the growth of lease rates was 4.2% . This is the strongest growth since December 2011 .

The positive dynamics of the rental market of luxury accommodation in London especially noticeable if to compare with last year, when in may 2014 the growth rate was 1.4%. The recovery of the UK economy and the movement of capital out of the market for the sale of housing before the election had the greatest impact on the rental market in London. These are the findings of a new report by Knight Frank.

In may 2015, the situation on the housing market seem to have made a turn. The number of registered potential tenants decreased by 12% compared to 2014, and the number of hits fell to 18%.

Despite a decrease in may, the summer real estate agencies anticipate a rise in the rental market of London. Traditionally the summer months – a busy time for students, families and employees of corporate sector who seek to solve their housing problems before the start of the new season.

The strongest demand is expected in the areas of Marylebone and Hyde Park in the sector of inexpensive housing.

On the market for sale in may, there was a modest increase of 0.3%. During the year the growth of prices for luxury properties in Central London was 2.3% , which is the lowest rate since 2009. These figures demonstrate the gap between the expectations of sellers and the real possibilities of buyers which are still digesting the changes in the scale of Stamp duty and are not willing to pay more.

® Alice Morgan 05.06.2015

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