Rents fall in wealthier boroughs

RENTS in the most affluent London boroughs have fallen over the past three months as the economic gloom deepens, while those in poorer areas have risen, figures show today.

Areas popular with high-earners such as Kensington and Chelsea, Westminster and Richmond-upon-Thames, saw average monthly rents drop by up to three per cent.

But rents in poorer boroughs such as Bexley, Lewisham and Redbridge continued to rise by up to 2.6 per cent over the summer. The figures, collated by property website Gumtree from data in its adverts, suggest cash-strapped tenants are looking for cheaper rents in less salubrious areas and pushing up prices. The Rental Index shows the high-end rental market across Britain has suffered during the credit crunch.

The Gumtree figures reveal that overall the average rental price of a property in London has remained virtually unchanged. Kensington and Chelsea is the most expensive area, at £1,588 a month. Havering is the cheapest at £879.

Independent property expert Michael Holmes said the rental market as a whole has not been affected by the credit crunch.

"However, at the very top end of the market we're seeing a price correction as demand for high-end properties drops off dramatically."