London price rises to keep rental demand high

21 2008
New figures released by one of London's biggest estate agents suggest that rental demand in the capital will remain strong for some time yet as significant numbers of professionals are priced out of the market.

So far over the first quarter of 2008, the company has seen a 15 per cent rise in the number of London postcodes witnessing an increase in the average price per square foot.

On average, property prices across the city rose by two per cent over the period, with the strongest growth seen in its financial heart, the EC1 postcode, where prices were up by 7.7 per cent.

According to the company, continued investments from City workers have kept property prices high, meaning that many people will opt to stay in the rental sector until the market cools.

Rob Bruce, research manager at Hamptons, said: "Despite predictions on reduced city bonus pay-outs, we have seen a steady stream of city bonus investors spending or looking to spend in the prime London markets such as Kensington, Paddington, St John's Wood and Richmond, and in the areas in which city employees live or need properties such as the City and the South Bank."

In comparison, Crystal Palace remains one of the cheapest London boroughs, both for buying and renting property. ADNFCR-1219-ID-18477778-ADNFCR

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