Middle classes renting, not buying, according to Times newspaper

Prices are holding up well in property that "makes the grade" Millenium House, SW1 - a two bedroom flat to let ideally presented for the corporate rental market



News in the Times today that the "middle classes" are being hit by the credit crunch and looking to rent, rather than buy right now.

There's some truth in this, although it's rather sensationalist to suggest rents are going up. Rents for cheaper property - say under £300 per week one and two bedroom flats are increasing - but there are precious few of these flats to let in Kensington, Chelsea, Belgravia et al. For higher priced flats and houses to let in London we're starting to see an afforability gap. Plenty of people looking to rent, lots of property available, but almost all of it priced beyond their means.

What does this mean for landlords? Well, if you have a property that's well specified (and I mean smart as smart can be) for the London corporate rental market there's still strong demand, albeit an increasing supply. If your flat or house is on the market to let and doesn't quite make the very high grade expected in this competitive market, then you may be looking at marginally less rent than you saw last time round.