PRIME LONDON PROPERTY RENTS INCREASE, WHILE SPACES BECOME SMALLER

LONDON: The capital's ultra wealthy are paying an additional 1.4% in rent in upscale neighbourhoods, indicating a steadfast demand for opulent spaces. (Reported by news source)

The most affluent tenants in London are looking for smaller rooms to rent, with growth for one-two bed houses up 1.6% over the past three months, per statistics from estate agent Savills.

However, the real estate company claimed that a shortage of inventory has caused home prices in affluent areas of London to soar by 2.8% in East and North London and 1.8% in South West London.

The inner commuting zone of London's middle class has seen an increase in demand as well, with housing prices in Harpenden and Tunbridge Wells rising 3.3% and 2.6%, respectively, in the first quarter of the year.

"Here too, smaller properties are continuing to outperform larger homes, a sign that the market is now dominated by needs-based, rather than discretionary tenants who tend to spend more," said Jessica Tomlinson, Research Analyst at Savills.