by Tom Bill
The latest data and analysis of the prime central London lettings market.
- Annual rental value declines showed signs of bottoming out in February, with growth of -5.1%
- The rate of decline has been relatively stable for five months
- The number of tenancies agreed in the first two months of 2017 was 17.2% higher than the same period last year
- The number of viewings in the first two months of 2017 was 16.2% higher than the same period last year
- Prime Central London Rental Index, February 2017: 165.5
Tom Bill, Head of London Residential Research:
“Rental value declines continued to slow in February as the pace of new rental properties coming to the market fell slightly. However, with the rate of new stock coming into the market continuing to exceed the number of new prospective tenants, rental values are still falling on a year-on-year basis.
“Prime central London remains a tenants’ market and landlords are having to remain competitive on asking rents to minimise void periods.
“Demand is stronger in lower price brackets and at the so-called super-prime level of £5,000-plus per week. The latter is partially due to some prospective buyers waiting for more clarity on the direction the market will take in 2017 – before they make the decision to buy.
“Demand remains more inconsistent between £1,500 and £4,000, with some large corporates still hesitant to commit to significant relocation plans because of wider political and economic uncertainty. However, as we discuss here, there is still evidence of strong demand for London as a financial centre.”
