Growing demand for apartments in Southwark is fuelling an upward rise in rents to mirror those of traditional prime Central London.
According to the latest Q4 2011 data from Cluttons, studio apartments in Southwark are now achieving average rents of £325 per week, while one-bedroom properties are letting for £500 per week, compared to £328 and £550 respectively in areas of prime Central London.
The growing number of cultural attractions right on the doorstep in Southwark include the Tate Modern, White Cube gallery, Borough Market and the Globe Theatre. The gradual influx of leading blue chip companies to the area including Ernst & Young, Norton Rose and Price Waterhouse Coopers has increased demand for rental properties which in turn has caused rents to rise and compete with the city’s prime areas.
Lynn Hilton, Head of residential lettings at Cluttons, said: "Demand for white collar worker accommodation is already soaring in Southwark and competition for properties will heat up further when The Shard delivers another almost 600,000 sq ft of office space at London Bridge in May next year.
"The South Bank continues to offer excellent transport links with train and tube line connections, cultural attractions, cafes and restaurants, which is competing hands on with prime Central London.
"The current shortage of supply of property in this area is set to continue with few opportunities for further waterfront development on the South Bank and this will maintain current high rent levels."
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