Categorized | International

Dismal Economy Hurting Property Rents in Central London

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Recent data indicates that residential property rents in prime central London have now fallen nearly one percent since peaking five months ago. The rents still remain higher than they were a year ago, though there is growing concern among economists in the United Kingdom.

 

Rents do typically experience a modest decline during winter months, as many companies opt to wait until the weather gets warmer to begin moving around, and adding positions to their workforce. However, the current outlook on jobs extends beyond the winter months, and many believe the dismal market will continue to impact property rents throughout London.

 

Employment vacancies have fallen more than fifty percent, and many companies are giving out significantly reduced bonuses in the first quarter of 2012. As such, those renters that would normally rent in prime central London are looking to either pay a reduced rent, or move out of the area.

 

Corporate rental tenants are also looking to cut back on their rent costs even further than they already have in the past few months. As businesses begin to focus even more on their bottom line, they are looking to cut costs anywhere possible to maintain profitability. It is for that reason that many businesses are looking more than ever to reduce costs associated with renting.

 

While there is still hope that prime central London, and other areas of the city will be able to avert the looming debt crisis that is currently affecting Europe, the current job outlook and rental situation in the region does not look overly promising.

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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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