London Central Portfolio (LCP) has issued its first lettings report for 2021, showing early signs of a recovery in the prime London market. This report analyses the performance of rental units in LCP’s managed portfolio.
Marylebone and Pimlico were the ‘hotspots’ in Q1 2021, according to the report, with over half of new applicants wanting to move to these areas.
During 2020, an unwillingness of prospective international tenants to move into London and a glut of short-let stock coming to the market saw a marked increase in properties available to let. The situation generally improved from June 2020 as tenants adjusted to the Covid crisis and Q1 2021 saw less stock available than a year ago.
Surprisingly, LCP says that 86% of new tenants in Q1 2021 were 30 or under, continuing a trend seen in 2020. These tenants are capitalising on historically lower rents whilst still available, as the promise of easing restrictions is slowly being realised. This contrasts with a reluctance of older tenants to move into London during the pandemic.
Andrew Weir, CEO at LCP, commented: “Despite a third UK lockdown, Q1 2021 saw a continued desire to live in prime London. A continuing trend which has accelerated across the previous year is the younger audience renting in prime London.”