There’s been a huge 15 per cent slump in the number of properties to let in prime central London over the past year according to agency Knight Frank.
It says that the decline comes “as more landlords explore a sale after tax changes affecting issues like mortgage interest relief, and wear and tear allowances.”
Even with this drop in supply, Knight Frank says rental values have still slipped by an average 0.5 per cent over the same period – 12 months.
“Political and economic uncertainty are still impacting demand” the agency admits.
Meanwhile in prime pockets of outer London, the reverse is happening.
In prime outer, the number of tenancies agreed above £1,000 a week rose 28 per cent in the year to April compared to a 19 per cent increase below the £1,000 threshold.
“It is the opposite trend to prime central London and shows demand among price-sensitive corporate tenants is rising in better value-for-money outer London locations despite wider political and economic uncertainty” suggests Knight Frank.
