London's residential rentals decreased in October for the first time since June 2009.

According to London-based Knight Frank, the investment market in London has delivered strong returns for investors in the previous two years. In the months since the Lehman crisis two and a half years ago, overall yearly returns for the audacious enough to enter the market were on average 18.2 per cent. home

The impact of the weak PUBLIN drawing foreign purchasers; London's safe haven position, reinforced by global political and economic turmoil, particularly the Arab Spring and eurozone crisis, and London's post-2009 recession economic recovery all increased investment profits.

Report highlights: Prime London residential rentals decreased in October by –0.1 percent, the first decline since June 2009.

Despite last month's decline, rentals increased by 0.6 percent in the three months to October.

In Q3, the last full year, the rental increase was 0.9%.

Since the low post-crisis in June 2009, rents have increased by 27%.

Prime London's rents are at almost all-time highs, up 2% from the previous high point in March 2008.

Stock volume is growing, with new orders rising by 36 percent annually.

The number of new tenants registered and seen has grown by 15% and 31%, respectively, suggesting an increase of demand for accommodation.

Due to the overwhelming demand from the renters, tenants were allowed at every break and renewal date to hike rates. The strength of central London's employment sector in this era was a major influence. This power is being tested by redundancies in the banking sector. City recruiter Morgan McKinsey confirms that the vacancies in London's financial services business in October were 22 percent fewer than in the same month last year.

While key demand and supply figures are all on the rise. There is a considerable mismatch between the increase of the supply and demand with new property instructions up 36% in the three months to October from the same period previous year and new tenant registrations up just 15%.

Tenant viewings have doubled the rate of new tenant entries, showing that residents are more interested in touring homes and don't feel under pressure to take the first unit they see.

While Liam Bailey was right in saying last month that "the current high growth in income will cease in the last quarter of 2011," he does not anticipate that rents are set to dramatically reverse. Bailey thinks that there will be good rental growth in 2012, but is likely to be confined to 4 percent to 5 percent, equal to yearly profits growth, which he considers to be a reasonable and sustainable medium- to long-term perspective for the London Prime Leasing Sector.