CITY DESK

Following reports in the FT that "deep cuts in London rentals" were underway following the economic slowdown in the capital, suburban rents on the other hand are up according to research by the London Daily News.

Areas particularly buoyant are Southgate, Oakwood, Morden, East Finchley, all experiencing residential rental hikes of between 15-20% on last years figures.

The report in the FT focused on the top of the end of the market like Kensington and Chelsea with weekly lets commanding in excess of £2500 per week.

Property agents contacted by the London Daily News are experiencing an increase in demand for properties and "a definite boost for the market". Rental values for properties are "going up given the shift from buying to letting and we are seeing rents reflect this" a local agent speaking to the London Daily News.

What is happening is a lot more properties for sale on the market with vendors being forced to rent to cover high mortgages.

In one example in Southgate a 4 bedroom property let last year for £1300 per calendar month is now fully let for £1700 per month by local agents.

A landlord in East Finchley Andrew Smyth on the level in demand said "as soon I advertise a one or two bedroom flat it goes within hours, I wish I had more stock to supply the market, I have never seen it like this before."

photo credit: London Daily News