London rental property prices fall Published: 20/08/2008

An oversupply of rental property in London is bringing prices down, according to a new study.

Research by Cluttons found that new properties – even in areas like Knightsbridge and Chelsea, where prices have traditionally been extremely high – have doubled in the past year.

More rental property available means there is less strain on supply, causing prices to be lowered.

In total, asking prices for rental property in London has fallen by up to five per cent in some areas.

Landlords are now having to offer added incentives to buyers – such as a cleaner or a gardener – to attract tenants.

Amelia Greene, partner for lettings at Cluttons, said: The struggling sales market has fuelled a mini boom in lettings, but we are now starting to see rents dip across the board, as the number of new tenants coming to the market levels off.

"To prosper in the current conditions, landlords must have realistic expectations regarding rental income and steer clear of void periods at all costs.

"A number of 'accidental landlords' who have come to the market reluctantly after failing to sell their property, are refusing to budge at all on the asking rent, instead settling for void periods which professional landlords know are seriously detrimental to yields."

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