Property Update: London rent falls

RENTS in favoured central London areas fell by almost 11 per cent in the year to June. The recession has forced companies to take a much harder look at relocation and accommodation costs in such places as Chelsea, Belgravia and Kensington, says Savills Residential Research. Some companies will no longer pay staff rents.

The firm's Central London Rent Index says that price falls mean the area must be attratctive for future buyers because of the prospects for capital growth.