London's rental market is starting to keep pace with sales, as demand for property in the capital continues to soar, according to key indicators published by agents Foxtons.
Since January, Foxtons has had 20 per cent more applicants for rented property than this time last year. This demand is leading to rent rises and an increase in renewals.
Last year, growing demand pushed rents across London above inflation after years of below inflation rate increases and, over 2007, the company is anticipating average rent increases of up towards ten per cent. In particular hotspots, such as family homes in the best areas, Foxtons are expecting a 25 per cent rise in rates compared to a year ago, given the present surge in demand.
Foxtons director Ed Phillips said, ‘Just like the sales market, the rental market is benefiting from the tremendous success of service businesses in London, particularly those in the financial sector. London has become an international business hub, drawing talent from around the world.
‘Many of these people drawn to the capital will want to rent because of high house prices and the short term nature of their contracts.’