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London Rents Set to Slump to Lowest in Nearly Six Years

  • Average rents could fall as much as 5% this year on Covid hit
  • The slow reopening of the U.K. economy is weighing on demand
London Luxury Property as Virus Hits Sales
Photographer: Hollie Adams/Bloomberg
Updated on

Rents for homes in London are set to drop to the lowest level in nearly six years, as a slow reopening of the economy weighs on demand.

The capital has already seen a 3% drop in rents during the first half, and the slide could extend to 5% by the end of the year to 1,580 pounds ($2,072), the lowest level since late 2014, according to a report from property portal Zoopla Ltd. Some areas of central London are seeing even steeper declines, with landlords flooding the market with properties previously rented out to short-term visitors.