Corporate tenants are pushing up residential rentals in central London, forcing private tenants to find more affordable properties in secondary areas.
Rowena Wild, joint managing director of Chestertons Residential, the British arm of Chesterton Petty, said demand from corporate tenants had been growing steadily over the last three or four years and was now peaking.
'This kind of tenant now dominates the central London letting scene, demanding impeccably presented, well-located property, for which blue-chip companies are prepared to pay high prices and commit to rental periods of two to three years,' she said.
This contrasted with the rental market of the mid-1990s which had relied on private tenants, with rental periods of six months.
Chestertons Residential said it had witnessed a strong summer rush for rental accommodation from people relocating from overseas and wishing to be settled in time for the start of the school year.
Prices in Mayfair, Little Venice, Hyde Park, Chelsea and Kensington had all increased by an average of 15 per cent from the same period last year.