London Rent Rates Fall by 0.8% in Q1 2012
According to the latest Prime Central London Lettings Index published in March 2012 by Knihgt Frank, commercial property rent rates in London fell by 0.1%, taking the quarterly decrease to 0.8%. Despite this, rent rates in Q1 2012 still remained 1.2% higher than at the same time last year.
It's interesting to note that cheaper property (priced at 500-1,500 pounds per week) was affected less severely than high-end property (priced at 1,500 pounds and above).
Property experts link the decrease in commercial property rent rates to the difficulties in the financial and business services in London.
Tim Hyatt, property expert, highlighted: "These figures underline that the lettings market has been struggling since November last year. The Morgan McKinley data is a strong indicator for corporate relocation and is a concern."
Let us remind that Morgan McKinley report suggests that job vacancies in the financial sector fell in March 2012, and so did bankers’ salaries.