Hamptons updates on falling residential rents

  Rents fell for the first time this year in the third quarter of 2008, according to estate agency Hamptons.   Hamptons’ House Price Tracker report, published today, reports rental prices down by 5.5% in London and 4.2% nationally in the third quarter, the first time they have fallen this year.   Rents in London fell by £74 a week in the last quarter   Rental supply is now outstripping demand, having soared by 131% in the last year. However, applications for rented homes are up by 27% in London   .Rob Bruce, research manager at Hamptons, said: “The challenges in the sales market are feeding through into the rentals market with many landlords now achieving lower rental prices.  Tenants expectations are also beginning to change with many making multiple offers on more abundant stock before accepting the best deal.”   Sales values in London have also fallen 6% during Q3.   The most expensive areas of the capital to buy property are Knightsbridge, at £1,557 per sq ftt, Kensington (£1500 per sq ft) and St John’s Wood (£1,163 per sq foot).   At the opposite end of the scale, the most affordable areas of London are Dulwich (£315 per sq ft), Clapham (£431 per sq ft) or Chiswick, at £448 per sq ft.   Weekly rents have fallen by £27 per week in the last quarter in the market outside London, and the average sale price is down by 5.6% in Q3.   The report states: “Patterns of activity in London filter out to the country in a rippling fashion, with Home County locations closest to the capital usually affected first.   “Across the country market, tenants have a wide range of properties to choose from and with stock levels continuing to rise, rents are levelling out or being driven down in some areas, with an average drop in rental prices of 4.2%.”   helen.roxburgh@rbi.co.uk