Monday, 12 January 2009

Rent crash continues

Mayfair rents; the top of the market on the monopoly board. Now they are crashing.

For a decade it was the preferred location for hundreds of hedge fund managers as they deserted the City and set up shop nearer to their well-heeled clients. Making the move to Mayfair and St James’s, they would think nothing of paying more than £100 a square foot for a few floors inside a Georgian townhouse, driving rents ever higher as they bid against each other.

Property experts described the rents as “eye-popping”, but investors’ money was flooding in and fee structures were designed to capture 20 per cent of the profits, so managers believed that the bills could be shouldered easily.

(from today's Times)

1 comment:

Anonymous said...

Alice, perhaps you can trade up from the Angel in Islington.