London’s super-prime lettings market continues to benefit from political and global economic uncertainty with the number of transactions consistently rising, according to the latest report from global real estate consultancy Knight Frank.
“While the uncertainty surrounding Brexit and the stability of the government has led to hesitation in some sales markets, it has caused demand for super-prime (£5,000+ per week) lettings property to strengthen,” Knight Frank said in its report titled “London Super-Prime Lettings Insight.”
Brexit has impacted the sales market while strengthening the super-prime lettings market as experienced by Knight Frank. The London lettings market has remained stable over the years though the growth in rental yield has been slow compared to pre-Brexit era. However, the lettings market continues to attract investors, as the demand for quality homes has been consistent.
For instance, Knight Frank observed an increase in demand in areas like Notting Hill and St John’s Wood, driven by the quality of the schools and they have been particularly popular among US tenants. The weakening pound means overseas tenants have been able to increase their budgets.
Further, the poor supply of super-prime new-build properties has resulted in premium for the rental values paid. “There are several examples where this has pushed the rental yield to in excess of 4% in the best schemes, which is high by the standards of prime central London,” Knight Frank said.
Knight Frank's Super Prime Lettings report looks at the performance of the £5,000-plus/week lettings market in London. The report provides an analysis of the current health of the sector, highlighting key trends and offers an informed view on the outlook for the market.