Rents in London’s prime property market increased for the second consecutive month, rising by 1.1% in the 12 months to June 2018, according to Knight Frank’s latest prime London lettings report.
The latest growth in rental values follows on from a 28-month run of declines, reflecting the fact that supply has declined as more landlords explore a sale following recent tax changes.
Data from Rightmove shows that the number of lettings listings above £2,000 per week rose 0.5% in the year to June compared to the previous 12 months.
The number of tenancies agreed in prime outer London was 17% higher in the year to June than the previous 12-month period, the Knight Frank data shows.
The figures also reveal that rental values between £500 and £750 per week, which has been the strongest-performing price band since the start of the year, declined by less than any other price bracket in the year to June.
Signs of recovery in London’s prime property market appear to be attracting new investors, according to a separate report.