Annual rental values of properties in Prime central London, one of the top real estate hubs, continued to rise, as the supply of properties declined in June, according to the latest Prime Central London Lettings Index from leading international property consultant Knight Frank.
The Index revealed that the annual rental value growth was 1.1 per cent in June. It was the second successive month of growth following a 28-month run of declines, a big relief to investors. The quarterly rental value change was 1.5 per cent, and this could hold steady.
Rental values have strengthened as supply has declined with more landlords exploring other options following tax changes, Knight Frank said.
In fact, the number of lettings listings above £2,000 per week rose 0.5 per cent in the year to June compared to the previous 12 months in Prime central London.
Properties in Prime outer London also saw positive growth in rental values. The quarterly rental value change in the area was 0.7 per cent.
The number of tenancies agreed in Prime outer London was 17 per cent higher in the year to June than the previous 12-month period, Knight Frank data showed. The trend reflects the relative strength of demand for lettings properties in Prime London market.
Knight Frank's Prime Central and Outer London Rental Indices have tracked the performance of London's prime rental markets since 1995.