The demand for residential rental properties (£2,000 per week) remains stronger in the Prime Central London region owing to uncertainty around the short-term prospects for price growth in the sales market because of higher rates of stamp duty.
According to international real estate adviser Knight Frank’s Prime Central London Lettings Index for May 2017, the demand for rental properties is stronger in lower and higher price bands. The number of new prospective tenants registering below £1,000 per week rose 15 per cent in the first five months of the year versus 2016.
The corresponding increase was 62 per cent above £5,000, a price band that represented less than 10 per cent of those registering, while there was a more modest 7 per cent rise in the number of new prospective tenants between £1,000 and £5,000.
While residential stock levels fall, the demand is increasing. Compared to the same period on 2016, the number of new prospective tenants registering between January and May rose 13 per cent while the number of tenancies agreed increased 26 per cent and the number of viewings rose 24 per cent, the Index revealed.
This latest annual figure represents an improvement from -5.2% recorded at the end of 2016. The rate of rental value declines is slowing as the level of new supply of rental stock coming to the market slows.