At last! Normality in sight for lettings market, insists top agency

Normality appeared on the horizon in the prime London rental market in October according to high end agency Knight Frank. 

Average rents in prime central are up annually by 9.6 per cent and outer London by 8.3 per cent - but both grew by less than 10 per cent in the year to October, the first time the annual rate has been in single digits since September 2021. 

Furthermore, there was no monthly change to average rents in either market, the first time they have been flat since April 2021.

Overall, the supply of lettings property in PCL and POL was 0.6 per cent higher than in 2019. Meanwhile, the number of new prospective tenants has calmed down in recent months, the agency suggests.

Supply has been driven lower in recent years as landlords have faced a proliferation of red tape and higher taxes. Meanwhile, demand has been underpinned by a sharp rise in mortgage rates that has forced more prospective buyers to become tenants.

David Mumby, head of Prime Central London lettings at Knight Frank comments: “Rents are at record levels but there are certainly signs that the unprecedented growth experienced over the last two years is starting to slow. 

“Market shifts that normally take years have been condensed into just a few months, so hopefully a period of relative predictability will now prevail giving Tenants and Landlords alike more time to make considered plans.”