LandlordToday reports that in the final quarter of 2017, rental values in prime London increased by 2.5% - up 1.2% on the same period in 2016.
Citing figures from the current LonRes Prime London Lettings Index, the increase in rental values is believed to be driven by fewer properties coming to the market in Q4 2017.
At the end of 2017, available rental properties in prime central London fell by 8% and, in prime London, they fell by 19%.
In prime fringe parts of the capital (which includes postcodes W4, W6, W9, W10, SE1, SE11, SW4, SW5, SW6, and SW11) rents did fall. However, this was the only region monitored by LonRes that saw an increase in new instructions - up 8% on Q4 2016.
The study also showed:
- overall, the number of properties let across the LonRes three prime areas rose by 7% over 2017 compared to 2016;
- there was a decrease in the number of properties let over Q4 2017, (5% fewer than in Q4 2016), but the number of top-end rental properties (asking £3,000 plus a week) increased by 24% year-on-year.
Marcus Dixon, Head of Research, LonRes, said: “A combination of fewer homes [to rent] reaching the market and increased demand, particularly at the upper end, meant achieved rents rose by 3% across prime central London in the fourth quarter compared with the same period a year earlier.
“The [rental] market remains sensitive to levels of new supply, but has continued to benefit from would-be owner-occupiers deciding to rent instead.”