• Strengthening corporate budgets and a wider tenant occupation pool will drive the demand for prime rental property.

• While some areas are seeing higher concentrations of new build stock being brought to the market, this will be met with demand if the product matches tenants needs. In the more mainstream markets such as Canary Wharf, mortgage constraints and lenders’ requirements for big deposits will drive demand.

• In the commuter zone, stock levels will be dependent on the sentiment of accidental landlords who may be wanting to sell as the sales market strengthens. However, some may decide to continue renting their property as capital value growth for prime regional property is forecasted to overtake London in commuter zone locations over the next five years.

Taken from
Spotlight: Prime Rental Market - July 2014