London rental prices falling, survey finds

People thinking of renting a home in London could find they get better value for money than they were expecting, the findings of a new report have suggested.

A survey conducted by the Royal Institution of Chartered Surveyors (RICS) found that more than half of its members in London had noted a fall in the rents charged for houses in the capital during the third quarter of 2008.

Around a third of surveyors also reported a fall in the rental value of apartments.

The problems in the housing market have persuaded increasing numbers of prospective owner-occupiers to halt buying plans, which has helped to increase demand for rental property.

However, RICS spokesman James Scott-Lee said that demand has been offset by the number of new landlords.

"The market place has become more and more competitive as many vendors have been forced to become amateur landlords, creating an inevitable downward pressure on rents where supply has matched demand," explained Mr Scott-Lee.

A recent Knight Frank report revealed that property values in London have fallen by an average of 12.4 per cent during the past six months, which means some people who opted to buy last year may find they are faced with negative equity.

Published 18th November, 2008

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