Categorized | International

Demand for Prime Central London Rentals Cools

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The overall demand for rental properties in central London experienced is not nearly what it once was late last year. In fact, the market growth in rentals in prime central London properties was just under one percent in the last quarter. That is quite the drop from the three percent growth experienced throughout the past year.

 

Economic turmoil and uncertainty are major factors in the decline in demand, as many of those that would be looking to rent the prime central London properties are employed in the financial services industry. As the economy struggles, those in the financial industry are typically less likely to have the money needed to rent an apartment in the prime locations of central London.

 

While the prime location of central London has struggled during the most recent quarter, other areas are enjoying the fruits of increased demand. Southwest London has been a top performer throughout the quarter, and as such, experienced an increase of more than two percent in the value of the properties in the area.

 

As more families and young professionals look to secure a rental residence at a more affordable price, it is likely that the most recent trend will continue. Those individuals will look not to central London for a rental, but rather to other areas of London where the rent may be cheaper.

 

Southeast England has also benefitted from the decline in demand for prime central London properties. The rental market in that region saw an increase of more than one percent in the last quarter, which is a substantial improvement when compared to the four percent decline that it experienced throughout last year.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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