London rental costs slide due to weak jobs outlook

THE WEAK jobs market in the City is partly responsible for a decline in central London rents, new research suggested this morning.

Residential rental costs soared in the capital from mid-2009 to the end of last year – but have now started to ease off.

On a three-monthly basis designed to iron out monthly fluctuations, rents were down 0.4 per cent in February, according to estate agents Knight Frank.

“Corporate employment is key to the rental market,” commented Knight Frank’s Tim Hyatt, “but it is too early in the year to predict the true picture of what rents will do over the course of the next six to 12 months.”

Knight Frank said that demand is still rising faster than supply.