London rental demand strongest for smaller properties
Rental demand in London has risen sharply for smaller properties and fallen for larger homes, according to new figures.
Data from estate agent Savills shows that the rental price of one-bedroom properties has risen by more than three per cent since the peaks of 2007, while two-bedroom properties are now one per cent more expensive to rent.
Demand has been increased by the difficulty first-time buyers are encountering in raising deposits and getting mortgages, the report suggests.
At the same time, the average rental price for five bedroom houses has declined by nearly seven per cent, while four-bedroomed properties are now 1.6 per cent cheaper. Savills puts these declines down to the reluctance of major companies to relocate executives and their families from abroad.
Even so, some areas saw larger drops than others. Central London rentals fell by nearly ten per cent, with many families looking to get more for their money by moving to areas such as South West London, where rental prices only dropped by one per cent.
See if you can save money on your buy to let property insurance with Discount Landlord’s competitive rates.