Renting set to boom as London property prices remain high

14 2008
While prospective first-time buyers across the country may have been encouraged by the recent downturn in the property market, those living in London are still facing rising prices, new figures show.

According to the latest figures from the estate agents Knight Frank, the capital 'bucked the trend' over the closing weeks of 2007, leading many professionals to choose rental accommodation over trying to get a foot onto the property ladder.

On average, property prices across London rose by one per cent in November and December, though areas such as Knightsbridge, Mayfair, Belgravia and Chelsea experienced greater rates of growth.

Liam Bailey, head of Knight Frank’s residential research, concluded: "Prime central London figures of 1 per cent growth appear to buck the trend of recent months.

He added that strong bonuses within the financial services sector continued to influence the property market, with this trend set to continue into 2008.

At the same time, rival estate agent Savills has announced that it expects property prices in the capital to rise by around five per cent over the next year, meaning demand for rental accommodation is likely to remain strong. ADNFCR-1219-ID-18425044-ADNFCR

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