By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards


Prime London lettings end 2021 in the black - after months of rent falls

Knight Frank has given an end of year assessment of the prime London lettings and says rents in the enclave are in the black, after months of falls.,

Supply surged dramatically in the early months of this year thanks to the closure of the short-let staycation market due to Covid restrictions. 

In February, the number of market appraisals for landlords, undertaken by Knight Frank, was 255 per cent higher than the same month in 2020. Yet by November, the increase had narrowed to 11 per cent with a large number of Airbnb-type properties back on the short-let market.


This precipitous drop in supply drove rents higher, with average rental values climbing 2.9 per cent in the year to December in prime central London; in prime outer London there was a 3.7 per cent rise.

These increases at the year-end compare to double-digit declines recorded just nine months ago. Indeed, the six-month increase of 8.2 per cent in prime central London in December is the highest recorded over an equivalent period since December 2010. A corresponding rise of 7.1 per cent in prime outer London was last exceeded in September 2007.

In the three months to November, the number of new prospective tenants increased by 28 per cent compared to the same period in 2020. 



Meanwhile, the number of tenancies started was up by 16 per cet. 

Tom Bill, head of UK residential research at Knight Frank comments: “Nine months ago, few would have predicted that rents would end the year in positive territory in the prime London lettings market. Thanks to a sharp retreat in supply and the physical re-opening of offices and Universities, that is precisely what happened.

“It would take more than a minor setback to put a meaningful dent in this rental recovery. It would require a rapid rewind to the start of this year, when the vaccination programme was in its infancy, staycations were banned, offices were firmly closed and all University lectures were online. More will become clear with the pandemic in the coming weeks.”

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

  • George Dawes

    In your other article you claim everyone is deserting pcl

    Make your mind up 😆

  • icon

    I haven’t seen any rise in the year only loaded with extra Regulatory costs by Government and Councils alike.
    Today half of New Year day spent on a licence application and pay the Council for my work associated with the application. LL must do all including requirements he is free, not one penny cost to Council, all their invented work load and costs transferred to LL.
    Regarding the 3.7% increase its news to me and anyway my return is about 3%.


Please login to comment

MovePal MovePal MovePal
sign up