Rents across prime central London have been roughly flat over the past year - although yields are up as a result of the continuing fall in capital values in the area.
New data from Knight Frank shows that in prime central London rents fell by a mere 0.2 per cent over the past 12 months and on a quarterly basis they increased by 0.5 per cent. Meanwhile in prime outer London rents were flat year on year and rose slightly by 0.2 per cent in the past three months.
The agency says the number of new prospective tenants increased by 22 per cent in the year to July across both prime central and prime outer London, led by increases in demand for homes costing up to £1,000 a week in the north of the capital and in the City.
The number of super-prime tenancies agreed in second quarter of the year was 40, the highest figure for the second quarter since 2013.
Tom Bill, head of London residential research at Knight Frank, says relatively low levels of homes becoming available to rent have tightened the market.
“Vendors in higher price brackets are typically more discretionary and some have opted to let rather than sell until price inflation returns” he adds.
In the longer term supply is likely to remain limited - the agency wants that the number of new build starts in London dropped to its lowest level in seven years in the second quarter of 2019.