Rents show stability in the prime London lettings markets

Rents are widely stable in the prime lettings markets in London, with little movement on a quarterly or an annual basis, the latest analysis report shows.

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 report from real estate firm Knight Frank.

The data also shows that in the outer prime London lettings market rents fell by just 0.3% quarter on quarter and on an annual basis by only 0.1%.

The number of tenancies agreed in both markets increased by 11% in the 12 months to April compared with the previous 12 month period. This followed a 13% uptick in March, the highest increase in seven years.

The higher value rental market in London has also strengthened over the year with the total number of deals per Knight Frank office between £1,000 and £4,000 per week some 13% higher in April this year than the same month in 2018.

Demand has risen in recent months as some buyers appear to have responded to political uncertainty by renting, the report suggests.

The report points out that demand in the high value lettings market, which is growing forcibly, evident by a notable 2.4% increase in the number of tenants registering with a budget of between £1,000 and £4,000. But the equivalent figure below £1,000 was flat.