The Prime London lettings market continues to show growth with the number of tenancies agreed in Prime Outer London rising to a three-year high in July.
According to the latest Prime London Lettings Index from Knight Frank, strengthening demand among corporate tenants, including oil and gas executives in south-west London in response to the higher oil price, has underpinned activity.
It means that demand for rental properties in Prime Outer London areas such as Barnes, Battersea, Belsize Park, Canary Wharf, Chiswick, Clapham, Dulwich, Fulham, Hampstead, Queen’s Park, Richmond, Wandsworth, Wapping and Wimbledon has picked pace.
The demand for rental properties in Prime Central London is also growing steadily. The average length of tenancies in Aldgate & the City, Belgravia, Chelsea, Hyde Park, Islington, Kensington, Knightsbridge, Marylebone, Mayfair, Notting Hill, Riverside, South Kensington, St John’s Wood, Tower Bridge and Victoria has risen to over 16 months over the last two years.
“Continuing uncertainty in the sales market around the trajectory for price growth means tenants are more prepared to commit to longer tenancy periods,” the report from the global real estate consultants, said.
Annual rental value growth in Mayfair was 5 per cent in July, making it the strongest performing market in Prime Central London. Public realm improvements and a series of high-quality new-build developments have led to increased demand in the area, the report said.
Knight Frank's Prime Central and Outer London Rental Indices have tracked the performance of London's prime rental markets since 1995.