The term of the rental market of elite real estate of London, the only areas of Canary Wharf and Wapping

Uncertainty in London’s financial services sector and the decline in corporations of their budgets is putting pressure on the rental market of elite real estate in London.

The average price of rents in the rental market residential real estate fell by 0.5 percent in the three months to the end of September 2013, the annual decline of about 0.9%. These are the data submitted in the framework of recent studies influential real estate Agency Savills, which specializiruetsya for luxury real estate.

A very weak trend of rising rents in the sector observed since 2011, which means that the rent is behind capital growth for 12 consecutive quarters.

In some areas of London there is a more significant fall in rents – for example, in North-West London, in districts StJohn’sWood and Hampstead rent fell by 3.3% over the past three months and 7.6% for the year. But this fall had smoothed the sharp decline of the market for single-family homes, which in September was special demand.

On the other hand, a small growth was recorded in the real estate market, where prices are slightly lower in the South-East – in the area of Canary Wharf and the South-West in the district of Wapping . Rental prices in these areas today is approximately two times lower than the prices for elite real estate in the city center that, consequently, evidence in favor of the potential of these areas. Prices saw their strongest value in the past three months, rents increased by 1.7%. The increase in rent was primarily due to the high demand over the summer from corporate tenants, students and people arriving on business trips. The ratio price-quality in those areas, many seemed attractive, which is reflected in the excess of demand over supply and rising prices.

The report notes that the drop in the price of rent of elite housing in Central and North West London due to increased supply on the one hand and a reduction of staff financial public sector.

Experts predict real estate Agency Savills, this trend will continue in the medium term.

® Helen Entree. 10.10.2013