Prime rents in the Home Counties dipped 0.8 per cent last year, but with the speed of fall appearing to be accelerating with figures for the final quarter alone revealing a 1.6 per cent drop.
The data, from Knight Frank, comes despite the agency reporting a 39 per cent year-on-year increase in new instructions in Q4 2016, and stating that the number of tenancies agreed between October and December 2016 was 12 per cent higher than the same period of 2015.
“The latest figures show that the rental market in the Home Counties is equally affected by the global markets as prime central London, which is reflected in the marginal decline in rents” admits Knight Frank partner Jemma Scott.
“However, the surge in activity in the last quarter of 2016 and the significant increase in new tenant registrations suggest that the gap between available stock and tenant demand is closing, so our outlook for 2017 is very positive” she claims.
Scott says that in the first week of trading for 2017, the sub-£4,000 per month market remains busy “and we have seen an encouraging number of international corporate enquiries as families and businesses plan for relocation to the UK.”