Expert: Rental market is stabilising in London

The high-end buy-to-let market in central London is a good indication of whether businesses are hiring or firing at the moment, it has been suggested.

Douglas & Gordon claims that rental prices are stabilising and there has been a surge of activity in the market.

This suggests that banks are rehiring, which is an "important pointer to the economy in general, not just for the rental market", the firm continues.

Ed Mead, director at Douglas & Gordon, says that many properties that would normally have been renting at £4,000 or £5,000 a week are now going for much less.

However, this is a "very sure sign at the top-end of the market that, although rents are down, there is some sort of recovery in demand", he asserts.

According to figures from Primelocation.com, stock of rental properties has increased by 96 per cent in the past year.

In June, the average rental asking price stood at £775.05 in central London.