The take up of new rental tenancies across prime central London decreased by no less than 12.7 per cent in the third quarter of this year compared to the same period of 2017.
Even worse, the figure is 22.1 per cent down on the five-year average for the third quarters of each year.
The figures come from high end lettings agency Strutt & Parker. The firm’s head of residential lettings, Kate Eales, says: “We are seeing people renting out properties because they haven’t been able to sell them, or moving into rental accommodation temporarily because they have found a buyer for their house and don’t want to lose them.”
She says the prime central London market is 18 months to two years ahead of the rest of the UK’s rental market and properties that went to the lettings market have now gone back on the sales market which is moving again, with what she calls “adjusted prices” - code for asking price cuts.
“Over the next few months, I think we will start to see rental prices go up slightly in central London for the first time in 24 months as stock levels tighten, alongside the impact of the tenant fee ban which will be introduced in April 2019.”