Prime London rents rise 4.6% in September, fastest pace in 18 months, LonRes says
LonRes says lets agreed fell 14.9% year on year while new instructions rose 3.4% and available stock grew 6.9%.
Rents in prime London grew 4.6% in the year to September, according to property data consultancy LonRes, which said this was the quickest annual increase it had recorded in 18 months. LonRes said average rents now stand 43.5% higher than their pre-pandemic average for 2017 to 2019.
Activity was mixed over the month. LonRes figures show the number of lets agreed was down 14.9% on a year earlier, while new instructions went up 3.4%.
The consultancy said there were 6.9% more rental homes available at the end of September than 12 months before. It added that stock is still well below typical historical levels.
LonRes said the Renters Rights Act remains a key factor. The Act does not cover tenancies with an annual rent above £100,000, which LonRes said in effect splits the prime market in two.
According to LonRes, the share of homes above that threshold differs widely between areas and has grown as rents have climbed. In Mayfair and St James's, 36% of the homes let this year have had rents above £100,000, the consultancy said, with Knightsbridge and Belgravia and South Kensington each above 20%.
Nick Gregori, head of research at LonRes, said: "The Renters Rights Act is likely to be having an impact here, from both sides of the supply-demand equation." He said some landlords have left the market, leaving tenants competing for fewer homes, and that some landlords who stayed may be asking for a premium because of what they see as stronger tenants' rights.
