Rents setting new records in central London

Rents in prime central London have risen by 12% in the last year, say agents EA Shaw.

The firm says central London residential rents rose 3% during the third quarter.
 
The firm points to a record rent of £64 per sq ft for a 357 sq ft flat in Floral Street, Covent Garden, when the average rent normally achieved is from £45 to £55 per sq ft. The bijou property was let at £440 per week, a 4% increase on six months earlier.
 
The highest rent per week in the Covent Garden area was also set when the firm achieved a record overall rent of £3,600 per week, 52% more than the previous record.
 
Lisa Hollands, head of residential at EA Shaw, said: “The central London lettings market continues to go from strength to strength, with demand far outstripping supply. This is particularly the case with new-build, as new stock is often let within hours of coming to the market.”
 
Transaction levels in terms of rental deals done rose by 31% compared to the second quarter and 8% more than the same period in 2011. The average rent increase of renewing tenants in quarter three was 4%.