As a result of the crisis on the stock market, many financial institutions in the City of London have reduced their spending on rented accommodation for overseas staff.
Foreign investment banks such as Merrill Lynch, Morgan Stanley, Goldman Sachs and J.P. Morgan Chase account for 70% of the demand for real estate in central London, according to property company FPDSavills.
Now that many investment banks have been forced to lay off staff, demand has fallen. As a result, rental prices increased by only 5.6% in the first quarter of 2001, the lowest growth rate in the country and down from 13.1% in the final quarter of 2000.
Frankfurter Allgemeine Zeitung, 12 April 2001 p55
