An increase in demand, coupled with the growing rental stock shortage, is placing upward pressure on rental values in prime London.
The number of properties in London valued by Knight Frank for prospective listing on the letting market hit its lowest monthly total in more than eight years in December.
With demand in the sales market increasing in recent weeks following the general election, it would appear that more landlords may attempt to sell, putting further upward pressure on rental values.
The number of new letting listings in prime central London fell by 7.7% in 2019 compared to 2018, while in prime outer London, the decrease was 14.4%, as a result of tax and regulatory changes in the BTL sector, along with increased activity in the sales market.
According to Knight Frank, the number of new prospective tenants for properties valued between £1,000 and £4,000 per week increased by almost a quarter - 22% - in 2019.
With research by Deloitte revealing that 45% of chief financial officers believe the financial prospects for their company has improved compared to three months ago - the highest proportion in more than a decade - there is a renewed sense of optimism that is driving activity levels, if not prices, in London’s prime residential markets.
The Purchasing Managers Index showed business activity at a 16-month high, in a further boost for the UK economy.