The latest Prime Central London Rental Index shows a rise in prime renting rates in Central London by 0.1% in April this year. This is followed by the trend of following falls in the past six months; rents have increased by 1.2% over the past one year.
But a further rent rate hike shouldn’t be expected by the landlords, says Liam Bailey, Head of Knight Frank Residential Research. This should be avoided over the fact that demand is outpacing the supply.
According to the report it was found that the property instructions were at 56%, new tenancy starts were up at 40%, whereas new tenant registrations were just up at by 5% and property viewings up buy 15%, thus resulting into a distorted ratio. Also a further gap in ratio of new applicants to new instructions, which last year stood at 4.3 and this year, to date, stands at just 2.9, was noticed.
The factors that can be attributed to this situation are incessant pause in the city’s employment market and making of tight budgets at individual and corporate levels respectively. Interestingly, the sale market in central London is on high, which means people prefer to buy than let.
Else from that what was observed from this report was that the there are differences in performances within this prime market. For instance, in Belgravia, the price had risen by 1.2% in April will Hyde Park, witnessed a 0.9% fall.
All in all, while properties in certain areas are not catching high attention, there is good number of viewers for properties in different area of UK.