There was an 11% rise in the number of tenancies agreed in prime central London and prime outer London in the year to April versus the previous 12-month period, new research from Knight Frank shows.
The higher-value rental market in the capital has also strengthened over the last year, whereby, the total number of deals per Knight Frank office between £1,000 and £4,000 per week was 13% higher in April this year than the corresponding month last year.
The high-value rental market in the capital is being supported by growth in demand from renters, particularly corporate demand, as reflected by a 2.4% rise in the number of tenants registering with a budget of between £1,000 and £4,000 per week. The equivalent figure for rents below £1,000 a week was flat.
The strongest annual growth in rents in May was also in the highest price bracket in prime outer London of £2,000-plus per week.
Knight Frank reports that average rental values in prime central London increased by an average of 0.2% year-on-year and by 0.1% in prime outer London over the same period, in response to falling levels of supply.
However, there are signs that growth in demand from renters for property in prime London areas could lead to resurgence in buy-to-let enquiries in the capital.