London continues to lead the UK property market
as the year continues and tenants in the English capital have been warned to brace themselves for rent increases of between eight and ten per cent this year.
Cluttons' latest Residential Property Forecast has claimed that mortgage famine and low consumer confidence continues to feed the demand for rental homes and put upward pressure on rents.
However, the news is not so bad for existing tenants who wish to renew their contracts. The consultancy noted that they are likely to face smaller rises in the region of four per cent.
Lynn Hilton, partner for Residential Lettings at the firm, said: "The central London lettings market is maintaining momentum during 2011
, with rents forecast to grow well ahead of trend, albeit down on the record rental growth seen in 2010. Tenants are really feeling the pinch and are being forced to widen their search areas to secondary locations and beyond."
She added that this pace of growth is expected to slow in 2012, although it will remain well ahead of inflation.
- Thursday 09 June 2011