Property price slowdown 'good news for renters in London'

09 2007
Tenants in London will be pleased to hear that the market for prime London property to rent saw a drop in average rental prices in September, down 0.8 per cent month-on-month.

At the same time, sales data from Primelocation.com revealed that stock levels hit a record high, climbing 9.6 per cent from August to September.

Ian Springett, chief executive of Primelocation.com, commented on the results: "Usually, when the sales market wobbles, we tend to see a flurry of activity in the rental market.

"Indeed, the surge in rental property coming to the market is significant, but in the short-term, prices are in decline as the current demand fails to match the increased supply.

"We therefore expect to see rental prices remaining relatively flat over the coming months," he added.

The data also revealed that there was an 11.8 per cent surge in the number of prime London properties for sale on the market during September compared to the previous month.

This is good news for any investors looking to expand their rental property portfolio, as prices for prime London property subsequently declined for the second month in a row, down 1.3 per cent on August.
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