Demand for rental accommodation in prime London has jumped by almost a third over the past 12 months, according to the latest report from Knight Frank.
The number of tenancies agreed by Knight Frank In London increased by 34% in the year to August, the highest such increase in more than five years.
The number of tenancies agreed by Knight Frank in the year to September rose by 39%, underpinned by uncertainty in the sales market.
The data also reveals that the number of new prospective tenants who registered in the year to September 2019 increased by 29% compared to the previous 12-month period, which was also the highest such rise in more than ten years.
Meanwhile, the number of tenancies agreed below £1,000 per week in prime central London increased by 42% in the year to September, the largest rise of any price-bracket.
Unsurprisingly, there are differing levels of performance in different price brackets. For example, average rental values between £250 and £500 per week in prime central London increased by 3% in the year to September. This compared to an average decline of 0.1% across all price brackets.
Between £1,000 and £1,500 per week in PCL, average rental values declined 1.7% in the year to September and between £1,500 and £2,000 the drop was 2.2%.
This relatively weaker performance is related to the fact that demand still remains more subdued among the senior executives who are typically more active between £1,000 and £5,000 per week.
Meanwhile, the number of tenancies agreed above £5,000 per week rose by 20% to 146 in the year to September, whole market data from LonRes shows, indicating how demand in the highest price brackets has strengthened in response to political uncertainty.
Average rental values have been broadly flat over the last 18 months in prime central London.