London rentals 'retain appeal'

Rented property in the capital is retaining its appeal in spite of "doom and gloom" forecasts from many pundits, it has been claimed.

Ed Phillips, lettings director at the London and Surrey estate agent, said that the shortage in housing stock is causing many people to give up on aspirations for homeownership.

Instead, he said that increasing numbers of people are flocking to London with a view to renting.

"This is essentially down to the factor of more people needing properties than there are properties available," he explained. "Despite the doom and gloom about the current economy there are still high volumes of people moving to London and relocating here."

Commenting on the volume of people making enquiries about lets with his own firm, Mr Phillips said he currently receives around five applicants for each property.

"The levels of business so far this year are more in line with what we would expect to see in the typically busiest time of year between April and November," he affirmed.

According to the Primelocation.com House Price Index for March 2008, the supply of prime London property for sale has fallen by 11.5 per cent since January.

News posted on 7th May, 2008