Rents in prime central London have shot up 26.3% in the last two years – with international tenants taking 60% of tenancies.
Knight Frank said that rents in London’s most exclusive neighbourhoods have gone up 6.6% already this year, and are now at a record high – 1.4% above their previous peak in March 2008.
With six in every ten lettings going to a foreigner, demand is being driven by tenants from Asia and Europe – the latter tending to work for banks and financial organisations expanding their operations in the UK.
Knight Frank also reported that new rental instructions have risen by 23% over the past year, with new tenant registrations up by 16%. The number of tenancies commenced has risen by 21% over the same period.
Head of residential research Liam Bailey said: “The number of tenancies started in the three months to August rose by 13% year-on-year, but the pipeline of tenancies agreed, which is up by nearly 50%, suggests new lettings volumes will rise steadily through the third quarter.”
Comments