Central London rental charges inch higher
For the first time in six months rental costs throughout prime central London properties increased slightly last month by 0.1 per cent.
According to Knight Frank in the six months leading to March rental costs as recorded in their Prime Central London Rental Index dropped by 0.8 per cent but are 1.2 per cent above the same time in 2011.
According to the property specialist supply is greater than demand at present so rates are not expected to show any great growth in the foreseeable future.
Reasons given for the lack of new tenant applications include further job losses in the City employment market and continued restrictions on corporate budgets. However some districts including Belgravia saw rentals cost increase above the average level for the London property market.
Rental growth is expected to remain rather subdued for the remainder of 2012 but is expected to pick up in the year that follows.