Greenwich, Wandsworth and Hampstead see rental growth while posh areas feel the chill (Heat Map)

Have the super prime areas of London finally peaked? The latest figures from Benham & Reeves Residential Lettings show that rental returns in many of London’s most desirable postcodes fell in the last quarter of 2013. Kensington, Knightsbridge and Notting Hill all saw drops of more than four per cent in rental values during this period while inner suburbs saw dramatic growth.

Part of northwest London also saw steep drops with St John’s Wood and Regent’s Park seeing reporting the biggest drops while central areas such as Westminster, Mayfair and Belgravia saw rental values flat line.

Outside of central London, the outlook was far rosier. Wandsworth and Clapham in the heart of nappy valley reported strong growth, as did other family friendly areas such as Hampstead and Greenwich. All saw rental prices increase by at least four per cent with Greenwich seeing an average increase of 16 per cent.

Notably, the up and coming areas of east London only saw modest growth while the Peckham area which has recently been tipped as a new family friendly area enjoyed strong growth of 7.69 per cent.

“Although the data showed some mixed results, the overall picture is of a strengthening British economy. Rental values are increasing in areas favoured by middle class families while areas that previously attracted numbers of foreign tenants are not seeing the same sort of demand. Sterling’s value is increasing against most foreign currencies so tenants are negotiating more keenly on rent,” comments Marc von Grundherr, Lettings Director of Benham & Reeves Residential Lettings.
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