Rental Growth Continues to Soar into Summer 2011

16 May 2011

A dearth of rental stock in many locations is pushing up rents and future prospects for rental growth are very strong say Savills researchers, who forecast that the private rented sector will account for one in five of all households by the end of 2016.

Mainstream rental growth has been particularly pronounced in Greater London where average residential rents rose by 16% in 2010.

The prime rentals market is also seeing strong price growth. Average prime London rents increased 3.4% in the first three months of 2011 and by almost 12% in the past 12 months. This growth shows no signs of slowing, and outpaces the 2.8% growth seen in Q1 2011 of the underlying value of properties.

Central London rents are traditionally driven by demand from corporate tenants from overseas which focuses on the high value prime areas and which has been on the increase since the recovery in the financial and business services sector in 2009. 

Boosted demand, coupled with fewer frustrated sellers or "accidental landlords" providing supply into the market following two strong selling seasons, means that rents have risen since the beginning of 2010 and steeply in 2011.

For more information on the Oxford buy-to-let market please contact me direct.

Lucy Taylor
Associate Director - Head Office
01865 759926 / lucy@scottfraser.co.uk

Source Property Live