Residential Agency

The London rental market continues to strengthen, but has to a degree been underpinned by increased tenant demand from those who cannot raise the deposit to enter the housing market.  Demand in this sector is also an inevitable consequence of falling transactional activity in the housing market where a reduction in supply boosted prices, beyond the reach of most first time buyers.  Capital values however improved during the first quarter of 2011, rather above expectation, but recent increases in supply may affect the rate of increase.    

The Clerkenwell rental market remains a popular location for City workers, where prices have long since recovered from the set-back experienced immediately after the credit crunch and are now approaching 10% for the year.  With increased stock levels however, we anticipate this rate of improvement may begin to level out although supply tends to constrict during the busy late summer period and this will impact on values.

In the longer term we anticipate that capital values in Clerkenwell may improve further, particularly property which is located conveniently to the substantial Crossrail transport project and other development initiatives.