Knight Frank is predicting that the number of tenancies agreed in the prime markets across London and the Home Counties in 2020 will be around 25 per cent below the five-year average.
This is based on the assumption that the current Coronavirus lockdown continues throughout April and May with a phased end to the restrictions in June.
Off the back of rental values in prime central London growing by 1.2 per cent, and in prime outer London by 1.1 per cent in the year to March this year, the firm’s view is that rental values in prime central and outer London will remain flat over the course of 2020.
There may even be some upwards pressure returning in the second half the year.
Liam Bailey, global head of research at Knight Frank, says: “Once the current crisis passes and activity begins to resume, we have to expect weaker economic activity in the first half of 2020, the dislocation in the jobs market and weakened consumer sentiment will impact on prices. However the relatively finite timespan of the crisis means declines will be limited.”
