While demand has remained constant (the average number of letting enquiries remaining largely the same for the same period 2013) the number of available properties currently on the market has meant rental figures have plateaued in real terms, although asking prices continue to increase in excess of the Retail Price Index. (RPI)

Rents in Prime Central London, a market long under-pinned by the financial services industry, decreased in value by 2.3% in the last 12 months, fueled by job cuts in some major city employers, continuing a downward trend started in June 2012.

Not all is doom and gloom, however, and it is suggested that with rising employment numbers and improving economic data coming out of the treasury, market recovery is not far off.

In stark contrast, the sales market continues to suffer a severe lack of stock and market demand is driving prices upwards accordingly. The clear dichotomy between the two markets (this a London-wide trend rather than just limited to the prime market) is a stark contrast and record sales prices are becoming the rule rather than the exception.

With expected interest rate rises within the next 18 months, it is expected that the numbers of available properties will rise leading to a ‘levelling-off’ in the more suburban areas of London, but prime Central London is expected to have asking prices continue to rise unabated, with some analysts estimating a 46% increase in prices over the next 10 years, well in excess of inflation.