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Rental shortage sees London prices swell over 12%

Andrew Ellinas, director said:

“Demand for rental properties continues to grow, in particular for one bedroom apartments of which there remains an acute shortage in prime areas of central London, including Marylebone and Regent’s Park. Whereas last year, tenants could have expected to pay on average £400 a week for a one bedroom apartment, the same property now costs around £450.

“However, with increasingly competitive buy-to-let mortgages now available from lenders, we are starting to see landlords return to the market, attracted by the promise of robust rental yields and prospect for strong capital gains in leading parts of the capital. This will have an impact on rental price growth, which I expect to slow in the second half of 2011 as more properties come onto the market reducing competition.”

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One thought on “Rental shortage sees London prices swell over 12%

  1. adie andrews says:

    According to the last publications for the last third of the year the number of the properties bought for investment purpose or so called buy to rent is strongly increasing. It is still looking as attractive investment due to the fact that the demand of vacation rentals London and business apartments London are unable to cover the supply of such properties.

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