2014 expected to see rise in prime central London rental prices

Landlords rent insurance policyholders who own or invest in prime central London property are being urged not to worry about declining rents in the category in the latter part of 2013, with rising demand and economic data suggesting that prices will be back on the up next year. The news will reassure many landlords in the capital shoring up their financial security with the assistance of Advanced Rent's (http://www.advancedrent.co.uk) highly regarded products.

According to the Prime Central London Rental Index of Knight Frank, there was a 0.3 per cent decline in overall rents in November, which means that for 18 months, luxury rents have been either flat or in decline. Doubtless that many holders of a rent guarantee insurance policy relating to prime central London property will be concerned by a rate of decline this year that has now reached two per cent, but the situation looks likely to differ greatly in the months ahead, with Knight Frank predicting that 2014 will see a return to rental growth.

Associate for rental research, Tom Bill said that demand for rented accommodation in the capital was "certainly on the rise", adding that there had been an 18 per cent increase in the number of new lettings in the year on the previous 12 months, while there were also 8 per cent and 9 per cent rises in new viewings and applicants respectively. He pointed out that there had traditionally been a link between the performance of the prime rental market in London and the wellbeing of the financial services sector, which was still suffering in the wake of widespread layoffs at banks and other financial sector organisations a few years ago.

Mr Bill signalled his expectation that such downward pressure would ease next year, when rents should rise by 2 per cent in prime central London, thanks to a combination of job creation and a more optimistic outlook for the City's economy. He explained: "As a result, we expect prime central London rents to outperform other markets over the medium term, rising 18 per cent between 2014 and 2018 versus 16 per cent in the UK and 17 per cent in prime outer London." He said that London's economic outlook had continued to improve as economists - such as the Confederation of British Industry - upwardly revised their growth forecasts, all news that should encourage many a rent guarantee scheme policyholder in the capital.

Mr Bill continued, in what should be further music to the ears of current and prospective holders of a rent indemnity policy such as Advanced Rent's (http://www.advancedrent.co.uk) Rent Guaranteed: "The improving data on the London economy is positive for the rental market where the index is still only 5 per cent below its all time high in September 2011 and a fifth higher than the Post Lehman low in the middle of 2009."

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