London rents 'to remain stable'

Office design news from Morgan Lovell

Published on 23-07-2010

It is likely that rental prices in central London have now reached a level where they will remain stable for the foreseeable future, one property expert has claimed.

Ed Mead, director of Douglas & Gordon, said there was a time when demand rocketed in central London but the supply of properties was unable to keep up. Therefore, there was a period of significant rental growth, but this is now behind us and supply and demand are now back in kilter.

He commented: "I think September is going to be a real tester, but certainly our central London offices are as busy now as they have been for a year, so the credible signs are that it is going to be a very busy rental market."

Mr Mead added that prices could go up slightly over the coming months but there is unlikely to be a massive rise.

According to figures from Knight Frank, average rental values in London's prime residential market rose by 9.2 per cent in the 12 months to the end of June 2010.

Posted by Ian Johnson.