Activity in the prime lettings market in London is picking up with viewing up substantially in the 12 months to May 2019, the latest sector analysis shows.
Overall, the number of new prospective tenants registering in prime central London and prime outer London increased by two-thirds in May compared to the same month last year, according to the report from real estate firm Knight Frank.
The number of viewings also increased in May, rising 20% compared to the same month a year ago in both lettings market. Tom Bill, head of London residential research at Knight Franks said that this spike in viewings indicates a current strength in demand, despite the series of tax changes faced by landlords in recent years
The data also shows that in the year to May 2019, Knight Frank agreed 19% more tenancies in both markets compared to the previous 12 month period, the highest rise recorded since 2010.
The super prime lettings market, that is £5,000 plus a week, had its strongest ever start to the year, where there were 57 tenancies agreed in this price bracket across London between January and May compared to 37 last year.
In terms of rents, the data shows that in prime central London rents increased by 0.2% quarter on quarter and are just 0.5% below where they were in May 2018.
In the prime outer London market rents increased by 0.3% on a quarterly basis while on an annual basis they are down marginally by 0.2%.
Bill explained that the increase in the number of prospective new tenants was due to political uncertainty as some exercised caution by renting. ‘In lower price brackets it has also been in response to the tenant fee ban, which came into effect in June,’ he said.
‘Despite the series of tax changes faced by landlords in recent years, the spike in viewings and new tenant registrations indicates the current strength of demand,’ he added.
