London lettings still booming

Posted: 03 Jul 2007 10:56:07 GMT

London's letting market has seen average rents rise by 4.2 per cent since April this year, figures released by Knight Frank reveal.

London's letting market has seen average rents rise by 4.2 per cent since April this year, figures released by Knight Frank reveal.

The rise, reported in Knight Frank's London Lettings Index, is the largest seen since records began in 1995, and means that average rents have risen by a massive 12.2 per cent in the last 12 months.

Areas such as Canary Wharf and Wapping saw the fastest rises overall, with rents going up by 7.6 per cent between April and June - 14 per cent over the last year.

"Recent strong rental growth has been accredited to the shortages of stock in the marketplace," commented Liam Bailey, Knight Frank head of residential research.

"It is our experience that some landlords are continuing to sell properties to take advantage of high capital price growth, and also to reduce their exposure to higher interest rates."

He added that family homes continued to be the main driver of rental growth, with many families choosing to move in the school summer holidays.

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