Knight Frank: London in midst of lettings boom
Published: 21-Jul-2008
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Worsening conditions in the London property market are fuelling a boom in the lettings sector, according to Knight Frank.
Research conducted for the estate agent's London Residential Review found that demand in the lettings market has increased by as much as 30 per cent over the last 12 months.
This acted to drive up rents by as much as 16 per cent during 2007, the study found.
Liam Bailey, head of residential research at Knight Frank, said that the surge in rental demand has led many professional property investors who have struggled to find buyers to opt to let out their property instead.
Mr Bailey explained: "There are already signs that, given the current market, developers are opting to retain stock and let it out in the medium-term rather than sell it at discount prices, particularly in more fringe areas that are still being regenerated.
"This benefits them in two ways - they do not have to take a hit on profits by selling, and they also gain from the improvements to the area produced by the new scheme, which will only be realised when the market begins to improve."
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