High-end London rents fall for first time in two years

Rents in the most London’s most exclusive and expensive neighbourhoods have dropped for the first time in two years, which estate agencies attribute to the number of redundancies at leading banks.

Research conducted by property consultants Savills has shown that average prime rents dropped by 0.4 per cent to £60 per square foot in the year to mid-June compared to the same period last year.

Lucian Cook, Savills director of research said: “Central London’s prime rental market is dominated by tenants from the financial services sector and is a barometer for what’s happening in the City of London employment market.”

Research from the Centre for Economics and Business Eurozone crisis suggests that the Eurozone crisis will lead to the loss of 25,000 jobs in London, which means that the number of jobs in London’s finance sector will reach a 16-year low.