Rents falling faster than house prices

Rents have fallen even faster than house prices in central London since the collapse of Lehman Brothers, an estate agent survey has found. Rents are down, on average, 10.6 per cent since September, compared with 8.9 per cent for sales. In ‘cold-spots’ such as Kensington and Chelsea they are down by as much as 15 to 20 per cent, as thousands of sellers, unable to find buyers, are becoming ‘forced landlords’. Last month, the estate agent, Douglas & Gordon, saw a 22 per cent increase in the number of homes offered to let.