Rental yields in prime central London are typically among the lowest in the UK, but that does not mean that there are not attractive returns to be achieved in the heart of the capital.
Fresh data from Knight Frank reveals that rents in Mayfair have increased by 5% over the past 12 months – more than anywhere else in prime central London.
Public realm improvements and a series of high-quality new-build developments have led to increased demand in the area, according the property firm.
The latest research from the company also reveals that the average length of tenancies in prime central London has risen to more than 16 months over the last two years, owed in part to the fact that continuing uncertainty in the sales market around the trajectory for price growth means tenants are more prepared to commit to longer tenancy periods.
The number of tenancies agreed per Knight Frank office in prime outer London rose to a three-year high in July, thanks partly to strengthening demand among corporate tenants.
The report from Knight Frank supports separate data from Strutt & Parker which reveals that take up of new rental tenancies in prime central London in the second quarter of this year rose significantly compared with the corresponding period last year.