Rents for luxury housing in London falling

Annual rent growth in Central London fell by 2.4% in September 2015 and reached its lowest level since September 2015, recent data shows. Report from the international Agency of elite real estate Knight Frank shows that the number of new tenants in the sector of luxury homes in London decreased for the three months to August 2015 to 5.9% . Experts attribute the reduction in demand for rental property class “luxury” in London is primarily with the slowdown of the Chinese economy, the Chinese nervousness in the financial markets and a downturn in auto markets.

The mood of uncertainty has led to the fact that large companies with headquarters in London, has ceased to employ highly paid staff, and respectively, decreased demand for luxury housing.

A decline in demand in the rental market of elite housing in Central London is also evidence of the fact that the number of viewings from potential tenants fell by 10.2%.

The decrease in rental demand is observed in all price ranges of real estate. In the beginning of the year the demand for rent is super – expensive real estate class “luxury” in London cost from £5,000 a week, was energized by the increase in Stamp duty in December 2014, when potential buyers are extra-expensive real estate abandoned transaction of sale in favor of rental housing. Now the effect of raising the rates of Stamp duty gradually mitigated the decline in prices and , against the background of global financial fluctuations, the decline in demand for luxury real estate has become particularly noticeable.

® Helen Entree. 01.10.2015

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