Fastest rent rises in 18 months recorded in prime London
Summary
Prime London rents rose at their fastest annual pace in 18 months in September, with average rental values up 4.6% year on year, according to LonRes. At the same time, lets agreed fell and new instructions edged up, while the consultancy said the Renters Rights Act is influencing supply, demand and pricing in the prime market.
Why it matters
Surveyors involved in valuation, lettings and investment analysis in London should note the changing rental dynamics and the potential impact of the Renters Rights Act on landlord behaviour. The emergence of a split market above and below the £100,000 rent threshold may affect comparables, yield assumptions and advice to clients.
Key points
- Average prime London rents rose 4.6% annually in September, the fastest growth in 18 months.
- Lets agreed fell 14.9% year on year, while new instructions rose 3.4%.
- Available rental stock was 6.9% higher than a year earlier, but still below typical historical levels.
- LonRes says the Renters Rights Act is affecting both landlord supply and tenant demand.
- A growing share of high-value lets are exempt from the Act in some central London areas.
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