Recent data has cast positive light on the performance of London’s private rented sector in 2018 – a year which provided many roadblocks in the form of political and economic uncertainty.
Despite said uncertainty, landlords and tenants alike will be happy to hear that last year in London the rental market remained steady, with a marginal increase in rents of 1.1% year on year, but falling 0.6% quarter on quarter.
The research, carried out by Knight Frank, reveals that average gross yields in central London reached their highest level since April 2012, reaching 3.5% in December.
The data shows that year-on-year every category of residential rental property in central London saw rents increase, up by 3.9% in the £250 to £500 a week range, up 0.6% in properties from £500 to £750 a week, 1.3% in the £750 to £1,000 bracket, 0.1% in the £1,000 to £1,500 region, up 1% in the £1,500 to £2,000 price point and up 0.7% upwards of £2,000.
Although this might sound like bad news for tenants, it is positive to see gradual rises in rents rather than huge spikes or falls in asking rents which are a sign of an unsettled market.
Tom Bill, head of London residential research at Knight Frank, said: “Lettings activity across prime London markets has been resilient despite the current uncertain political backdrop.” He added, “The number of new tenancies agreed in November was 12.3% higher than the same month last year while the number of new prospective tenants was 2.0% higher.”
Central London is a notoriously difficult market for tenants, but the latest figures point to a healthy prime London rental sector, with more renters signing up for properties in 2018 than the year before.
We hope that 2019 will follow in a similar vein, with more and more tenants being matched to their ideal properties!