Rental values in prime London remain firm on the back of greater demand from tenants, as continued political uncertainty continues to push would-be tenants into the prime rental market.
Rents are starting to rise in some areas owed in part to a supply-demand imbalance in the market, with many agents reporting an undersupply of properties to let.
Tim Hassell, Managing director at Draker, said: “In the first three months of the year the rentals market has remained strong and stable, despite the Brexit rollercoaster and within the last few weeks, we have seen a sharp rise in the number of properties coming to the market.
“2019 transaction levels in Kensington and Chelsea are virtually identical to 2018. In our Fulham Broadway office, which opened last year, we have seen transactions rise by 50%.”
A combination of fewer homes to rent reaching the market and increased demand suggests that rents in prime London will remain stable in the near term.
Hassell added: “Looking at the number of weekly applicants for Q1 of 2019 the number of 456 is not far off the weekly total of 505 we recorded in 2018. The volume of long term rentals available on the rental market has also remained stable with Q1 2019 showing an average of 161 a week compared with 163 in 2018.
“Overall, the London rental market remains stable. However, we have detected that more tenants are exercising their break clauses, this might be a blip but it is something to be aware of.
“The very recent spike in levels of available property with a lower number of tenants in the marketplace, means correct pricing is important, but rent levels are still similar to those of previous years with few void periods.”