Political upheaval leads to surge in prime central London lettings

Knight Frank says the number of new prospective tenants registering for prime central London properties in the second quarter of this year rose 47 per cent over the same period last year - and it’s down to the political uncertainty still hurting the market.

The agency says the unpredictable political backdrop means some buyers have opted to rent in the short-term, possibly encouraged by the introduction of the tenant fee ban in June which has reduced upfront costs and thus makes renting more attractive.

The company says viewings in the first six months of the year rose by 10 per cent compared to last year, while the number of tenancies agreed in Q2 2019 was up by 25 per cent compared to the same period in 2018.

Meanwhile the number of newly listed properties in prime central London with an asking rent above £1,000 per week rose by 11 per cent in the second quarter - and those above £2,000 per week rose by 16 per cent. 

“These increases are indicative of a trend, where those landlords that had initially listed their property for sale in response to tax changes, have now reverted back to the lettings market in the case that they have not received the asking price they desire” says Knight Frank London research chief Tom Bill.

He adds that this trend is also being observed in the super-prime price bracket, with 151 tenancies being agreed in the 12 months to June.