London rental market 'will stabilise'

Posted: 23 Jul 2010 10:58:41 GMT

The rental market is central London will stabilise over the coming months, one expert has suggested.

Director of Douglas & Gordon Ed Mead said rental costs have finished increasing for the year and should now start to slow.

"You had a situation where demand rocketed for rental properties and supply obviously went through the floor. It was a classic economic situation where you had huge demand and limited supply," he added.

Mr Mead noted in 2009 there was a significant decrease in the supply of rental properties and the levels seen were the lowest in 20 years.

He explained this year has been odd because of the uncertainty surrounding the general election and the emergency Budget.

The specialist's comments follow the release of figures from Knight Frank, which revealed lease costs in London's prime residential market grew by 9.2 per cent in the last 12 months to the end of June.


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