London rents 'leveling out' for tenants

Posted: 20 Aug 2008 13:35:07 GMT

            Property News - London rents 'leveling out' for tenants

As the supply eventually begins to meet demand in London, tenant rents are beginning to level out, according to a new report.

Research conducted by property consultant Cluttons revealed that the rental market is still performing well, but that the influx of sellers deciding to let their property has driven a surge in supply that will impact on rents.

In areas such a South Kensington, Chelsea and Knightsbridge, tenants have seen rents fall by five per cent over the last month, as the number of available properties has doubled.

Amelia Greene, partner for lettings at Cluttons' South Kensington office, explained that tenants are now becoming more demanding as the market swings in their favour.

"The struggling sales market has fuelled a mini boom in lettings, but we are now starting to see rents dip across the board, as the number of new tenants coming to the market levels off," she said.

Earlier this week, the Royal Institution of Chartered Surveyors reported that new instructions for lettings - an indication of supply in the rental market - increased at the fastest pace it has ever recorded in July.

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