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London prime rents improve
RENTS in London’s prime postcodes rose 0.2 per cent in the first three months of the year after a two-and-a-half-year decline, as a recovery in the lettings market began to gather pace.
The capital ranked at the bottom of Knight Frank’s Price Global Rental Index, in 18th place, after rents declined by two per cent over the year to March 2014.
However, Knight Frank’s head of international residential research, Kate Everett-Allen, said slowing growth in the sales market, and an expected rise in interest rates, was likely to boost rental demand as mortgage costs rise over time.
“The key risks for the world’s sales markets could emerge as catalysts for growth in terms of prime rents,” she said.