After two quarters of strong growth in rental values, rents across the capital finally started to plateau, according to Benham & Reeves Residential Lettings.

Most parts of central London saw rents remain at the same level or saw increases of less than 2%. These figures echo market conditions across most of east and south London which also saw rental growth stall after a long period of growth. Notable exceptions are the Covent Garden area, which is seeing rental price growth as the area becomes a more established residential destination, and the trendier parts of Hackney which continue to attract young, affluent professionals, says the estate agents.

Conversely, parts of north London saw price falls as seen in the previous quarter. Continuing issues on the Northern Line and the closure of the interchange at Tottenham Court Road during Crossrail works have put off many would-be commuters. 

“With stamp duty (for investors) attracting an extra 3% from April, we anticipate supply will fall as amateur landlords exit the market or seek out other asset classes,” commented Marc von Grundherr, lettings director of Benham & Reeves.