The demand for rental properties in Prime Central London strengthened in February 2018, as the number of prospective tenants increased significantly.
According to the latest Prime Central London Lettings Index from international property consultant Knight Frank, the number of new prospective tenants looking for properties to rent increased by 17.6 per cent when compared to the corresponding period last year.
Likewise, the number of viewings in the year to January 2018 was 14 per cent higher than the previous 12 months. The number of new prospective tenants increased by 18 per cent up over the same period. In fact, during the period under review, the tenancies agreed were 11 per cent higher annually.
As new supply moderates and demand strengthens, Knight Frank predicts continued upwards pressure on rental values.
Incidentally, February was also the month that a mood of complacency on global stock markets came to an end, Knight Frank observed. While the volatility was in response to the prospect of rising interest rates, it also served as a reminder for London landlords of the benefits of holding real estate.
Though uncertainty prevails in the Prime Central London property, the new tenant registrations for properties at below £1,000 and above £5,000 per week rent increased.
The prolonged nature of the adjustment in prime London rents is due to the high levels of supply introduced to the market in recent years, including during the period following the introduction of an additional 3% rate of stamp duty for landlords in April 2016.