Knight Frank says landlords are in the driving seat in the prime rental market across London and the Home Counties.
Low supply and high demand means that average rental values in prime central London increased by 3.5 per cent in the first three months of the year.
In prime outer London, there was a rise of 2.5 per cent.
Meanwhile in the year to March average rental values increased by 21 per cent in prime outer London and by 26.3 per cent in prime central London in the year to March.
Rents are now 8.2 per cent higher than they were before the pandemic in prime central London and 7.2 per cent in prime outer London.
The number of market valuation appraisals (a leading indicator of supply according to the agency) was 25 per cent higher in the year to March than the previous 12 months. At the same time, the number of new applicants was 48 per cent higher.
“Demand is still outstripping supply,” says Gary Hall, head of lettings at Knight Frank.
“It’s good news for landlords as it means void periods are very short. For tenants, it is still a tough market and decisions need to be taken quickly. It has been this way for nine months and I can’t remember seeing these sorts of conditions for this length of time.”
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