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London buy to let insurance customers see rental market stabilising
23 Jul 2010
Posted by Judith Stevenson
Buy to let property insurance policyholders in central London should expect to see rental prices in the capital remain "stable" in the coming months after a year of consistent rises, according to one estate agency.
Average rent amounts have risen by 9.2 per cent in the past year, with an increase of 2.6 per cent in the last three months, according to Knight Frank Figures.
Ed Mead, director of Douglas and Gordon, suggested that rental prices have "done their increasing" for the year, but that indications of a busy market mean that values are still likely to be "slightly on the way up".
He added that the rise in prices over the past 12 months had come as a result of reluctant landlords abandoning the market.
"You had a situation where demand rocketed for rental properties and supply obviously went through the floor. It was a classic economic situation where you had huge demand and limited supply," he said.
