The tenant demand has strengthened while rental values moderated in June 2017 in the Prime Central London property market, one of the top real estate markets in the world, according to a study by international property consultant Knight Frank.
The Prime Central London Residential Index released by Knight Frank shows that annual declines diminished over the last seven months owing to strengthening of tenant demand and weakening levels of new supply.
The supply of new properties to rent grew notably in 2016 in view of uncertainty surrounding the impact of higher rates of stamp duty on price growth in the sales market, meaning some potential vendors opted to let their properties.
The number of new available rental properties in Prime Central London grew 29 per cent between January and May 2016 compared to 2015, an analysis of the data shows.
The tenant demand continues to strengthen, a trend that is more marked below £1,000 and above £5,000 per week, according to Knight Frank.
Knight Frank's Prime Central London Rental Index has tracked the performance of London's prime rental market since 1995. Compiled quarterly, the index is based on the valuation of a comprehensive basket of properties throughout our central London office network and is based on rental evidence.