But the picture is much less bright for investment purchasers, because rental values--which Chesterton has tracked for four years--are still in the doldrums. OnlyHampstead, Fulham, Barnes and Hyde Park have shown any increase in rental values over that period with Hampstead achieving 8.6% growth; Fulham 3.7% and Barnes and Hyde Park 1.4% each.

Every other area has experienced a decrease in rents with Little Venice showing a 21.6% fall. Generally houses to rent are performing better than flats, and the worst performer has been flats in Wimbledon which have seen a 24% drop in rents since 1999.

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