Central London Rents On The Increase Again

11 November 2012 Categories: News

Central London Rents On The Increase Again

EA Shaw, one of the top estate agencies in central London, has reported a staggering 12% increase in prime central London rents during the last twelve months; 3% of which has occurred in just the last quarter. According to their figures the average flat in Covent Garden is now renting for around £1.20 per square foot per week, which provides a weekly rental amount of £400 to £440.

Head of residential lettings at EA Shaw, Lisa Hollands, commented “The central London lettings market continues to go from strength to strength, with demand far outstripping supply. This is particularly the case with new-build, as new stock is often let within hours of coming to the market.”

She then went on to say that the number of rental deals carried out by EA Shaw has risen dramatically as well, with 31% more tenancy deals being completed in Q3 than Q2 of this year, and 8% more than the third quarter last year. Even tenants who chose to renew their tenancy agreement this year have been hit with rent rises, the average being around 4%.

Professor Michael Ball, a property guru commissioned by Cluttons to write a report, has predicted that the average rent in London will continue to rise on an annual basis for at least the next ten years as the demand for property continues to outstrip the supply. The Government however has forecast the building to around 35,000 new homes per year in order to keep up with demand.