New data produced by Knight Frank shows that the number of tenancies agreed in August this year was the highest on record, while the number of tenancies sealed in the three months to the end of August rose 15.7 per cent.
The number of new prospective tenants and viewings rose 5.5 per cent and 21.7 per cent respectively but there was bad news for investors in terms of PCL rent levels - these fell 4.7 per cent in the year to the end of September.
“August was a record month for us in the lettings market and with supply and demand both increasing the short term outlook is positive. Continued uncertainty created predominantly by higher stamp duty rates but exaggerated by Brexit has led to an increase in prospective tenants and landlords. Although there has been some price adjustment, we are seeing a lot of tenancies being agreed as a result” according to Tim Hyatt, head of lettings at the agency.
Supply and demand are less balanced in some price bands and markets, which means asking rents are being exceeded by some margin in some areas. This is the case for lower-value properties in some of the best City and Fringe developments, suggests Knight Frank researcher Tom Bill.
“More broadly, lower price bands have been performing more strongly. Rental value growth below £500 per week is stronger than higher price brackets, though it strengthens upwards of £2,000, which reflected a strong month for super- prime tenancies (£5,000-plus per week) in September” he says.