Thursday, Oct 17, 2013

Did anyone notice that Prime Centeral London Rents Are Falling?

Savills: Rental values in PCL fall as tenants are looking for value

Rents across prime London saw marginal falls over the year to the third quarter of 2013, continuing a period of lacklustre rental growth seen since mid 2011. This is largely due to an increase in prime rental stock and a constrained employment market in the financial and business services sector. Prime Central London down 6.1% YOY.
South east of England In the prime south east of England, rental values have performed in line with the London market seeing marginal falls over the third quarter of 2013.

Posted by khards @ 04:50 PM (2473 views)
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3 Comments

1. bidin'matime said...

Residential letting is a mug's game anywhere south of Watford - and still a bit risky further north. It's only government policy that's producing profits for them at the moment - and as soon as IRs 'normalise', loads of them will go bust. And if IR's are kept low after the rest of the world allow theirs to rise, then the foreign investors will sell in their droves, as Sterling slides yet further. Either was, it's only a matter of time...

Thursday, October 17, 2013 06:43PM Report Comment
 

2. libertas said...

Yes, in the long term that will be true, but right now volatility in USA and Euro are sending capital to London. If that lasts another ten years, then I'd rather not put all my eggs in that trade.

Friday, October 18, 2013 07:24AM Report Comment
 

3. khards said...

I know yields are very low to negative in most areas of London. I have often heard landlords in Australia bitching about 'investors' using negative gearing in the expectations of capital appreciation.
From my perspective if London rents cannot be increased, ie. Further wealth cannot be extracted from the highest earners in the country then this markes the start of some kind of turn in the market. It may just stagnate rather than continue rising for example.
Perhaps it demonstrate that earnings in the city relative to property prices are maxed out. There was that article the other day suggesting that mid-ranking bankers cannot afford property now as they are competing with international oligarchs, if indeed this is true then there will soon be thousands of bankers in the city who have a disincentive to inflate the market.

Friday, October 18, 2013 09:27AM Report Comment
 

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