Knight Frank research manager David Moulton says: 'The last six months have been characterised by a wait and see approach towards house buying. Renting has been increasingly viewed as the preferred tenure choice of the consumer.' Rents increased by 9.7% in Greater London and 5.8% in the country market in the 12 months to March 2001 with the supply of prime London property dropping by 20% over the same period.
With continuing price rises in the housing market many property owners have decided to cash in and sell their assets at what they percieve to be the peak of the market and not buy any more property. 'This has only exacerbated the supply and demand imbalance,' says Moulton. 'Demand for good quality, well located rental accommodations will continue to outweigh supply levels, fueling even further growth in rents. Demand will continue to outweigh supply for the foreseeable future.'
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