Rents in central London have accelerated at record levels, new figures reveal.
Knight Frank's London lettings index finds that between April and June 2007, average rents rose 4.2 per cent, the largest rise since records began in 1995. Rents have risen by an average of 12.2 per cent over the last twelve months: bad news for those living in a London flatshare.
A lack of properties has been cited as the cause of the steep increase in rents. Liam Bailey, Knight Frank’s head of residential research says: "Recent strong rental growth has been accredited to the shortages of stock in the marketplace."
He added: "It is our experience that some landlords are continuing to sell properties to take advantage of high capital price growth, and also to reduce their exposure to higher interest rates … Houses continue to be the main driver of rental growth in these markets as families seek to relocate with minimum disruption to the school calendar."
The highest rises in central London rents over the last quarter were in Kensington and Notting Hill: the cost of a flat share in West London is up by 6.1 per cent, largely because a shortage of properties has pushed up prices.
However, a flat share in East London could be even more costly: "outer prime locations" such as Canary Wharf and Wapping have experienced rent inflation of up to 7.6 per cent in the last quarter and 14 per cent over the last 12 months.
