Higher-value rental markets in London strengthen
Overall rents in prime central London were unchanged on a quarterly basis and down just 0.2% year on year, according to the May 2019 Prime London Index.
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The number of tenancies agreed in PCL and POL increased 11% in the year to April versus the previous 12-month period. This followed a 13% uptick in March, the highest increase in seven years. Demand has risen in recent months as some buyers respond to political uncertainty by renting.
Meanwhile, the higher-value rental market in London, which is traditionally driven by corporate demand, has strengthened over the last year. The total number of deals per Knight Frank office between £1,000 and £4,000 per week was 13% higher in April this year than the same month in 2018 while the equivalent rise in properties rented for less than £1,000 per week was 3%.
Demand is also growing more strongly in the higher-value lettings market. The number of new prospective tenants registering on a budget of between £1,000 and £4,000 per week rose by 2.4% in the year to April compared to the previous 12 months. The equivalent figure below £1,000 was flat
The strongest annual growth in rents in May was also in the highest price bracket in POL of £2,000-plus per week. While average annual rental value growth in POL was 0.3%, it was 1% above £2,000 per week.
Download the May 2019 Prime London Rental Report
This report analyses the performance of single-unit rental properties in the second-hand prime central and prime outer London markets between £250 and £5,000+/ week. For an analysis of the build-to-rent market and the institutional private rented sector in London and the rest of the UK, please see our Private Rented Sector Update