The rental market in Prime Central London has shown signs of recovery at the end of 2017, according to new analysis by London Central Portfolio. Following 18 months of negative rental growth, the mainstream rental market has now seen two consecutive months of positive increases with rents in November up 3% year-on-year the firm says, adding that weekly rents in the mainstream London market now average £573.
The increase in November has brought rents back to the level they were at in March 2016 before the introduction of the Additional Rate Stamp Duty (ARSD). This tax had a marked effect on the market as owners, struggling to sell, chose to rent their properties, resulting in significantly increased levels of rental stock. However, the latest statistics indicate that this trend is now reversing. According to the data, there has been a 23.6% fall in the number of units available to rent over the last three months, compared with the same period in 2016.
Naomi Heaton, CEO at LCP, commented: “It is becoming increasingly clear that tenants are looking for smaller and smaller properties as they seek central locations offering an easy commute to work or university at affordable prices. This is driving demand for Prime Central London’s small units.”