Prime London property rents 'set to fall'
13th Mar 2012
There is likely to be a reduction in rents for prime London property in the coming weeks, according to one expert.
Ed Mead, director at Douglas & Gordon, said that he does not expect to see rents going up over the short or medium term, by virtue of the fact that buy to let property has had a "resurgence" in recent times.
This is because a mortgage on buy to let property is, in many cases, easier to get than a residential mortgage at the moment.
"It is quite fast growing - I'm seeing a lot more people looking to invest in residential property to let it out. That would therefore imply that the supply of that sort of property is likely to increase," Mr Mead noted.
The expert observed that the City seems to be a "net firer" at the moment, rather than a net higher, and therefore it seems logical that demand over the next year or so is likely to fall slightly as supply is going to increase.
Over the short term, this will naturally bring rental prices down, the property expert suggested.
It comes after Liz Peace, chief executive of the British Property Federation, recently said that prime London property is one of the very best places to invest at the moment, at a time of global uncertainty.
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