Knight Frank has issued a relatively upbeat assessment of the prime London lettings market as the year draws to a close.
Firstly average gross yields in prime central London have risen over the course of 2018 as a result of rising rents and downwards pressure on prices. A yield of 3.35 per cent in December was the highest since April 2012 - this agency says this compares favourably for investors to, for example, the yield on a 10-year UK government bond of less than 1.3 per cent in early December.
“There has been similar upwards pressure on yields in prime outer London as rental value declines bottom out. An average gross yield of 3.5 per cent in December was the highest recorded since March 2015” explains Tom Bill, the agency’s head of residential research for the capital.