Prime London rents still dipping but viewings and registrations rise

Demand continues to build in prime lettings markets in London and the Home Counties, with Knight Frank data showing the number of new prospective tenants registering reached the highest level on record in June, as did the number of viewings.

Compared to 2019 - an active year in the lettings market - the number of viewings conducted by Knight Frank was 82 per cent higher in the month of June while the number of new prospective tenants was 97 per cent higher.

The weekly number of enquiries from corporate relocation agents - a key aspect of the prime lettings market in normal times - reached its highest level since September at the end of June in a sign of how activity is rising.

However, rental value declines continued to narrow in June, as demand increased compared to supply.

In prime central London, the average decline in the three months to June was 1.6 per cent, the smallest drop since the start of the pandemic. 

The annual rental value change in PCL was down 11.5 per cent, the narrowest decline in six months. 

“The prime lettings market in London and the Home Counties is on the verge of a notable escalation in activity” says Tom Bill, head of UK residential research at Knight Frank. 

“Demand is getting stronger as supply normalises, which means upwards pressure on rental values. And that is before the relaxation of international travel restrictions.”