London’s rental sector weathered the storm in 2018

By Emma Martin, 16 January 2019

Recent data has cast positive light on the performance of London’s private rented sector in 2018 – a year which provided many roadblocks in the form of political and economic uncertainty.

Despite said uncertainty, landlords and tenants alike will be happy to hear that last year in London the rental market remained steady, with a marginal increase in rents of 1.1% year on year, but falling 0.6% quarter on quarter.

The research, carried out by Knight Frank, reveals that average gross yields in central London reached their highest level since April 2012, reaching 3.5% in December.

The data shows that year-on-year every category of residential rental property in central London saw rents increase, up by 3.9% in the £250 to £500 a week range, up 0.6% in properties from £500 to £750 a week, 1.3% in the £750 to £1,000 bracket, 0.1% in the £1,000 to £1,500 region, up 1% in the £1,500 to £2,000 price point and up 0.7% upwards of £2,000.

Although this might sound like bad news for tenants, it is positive to see gradual rises in rents rather than huge spikes or falls in asking rents which are a sign of an unsettled market.

Tom Bill, head of London residential research at Knight Frank, said: “Lettings activity across prime London markets has been resilient despite the current uncertain political backdrop.” He added, “The number of new tenancies agreed in November was 12.3% higher than the same month last year while the number of new prospective tenants was 2.0% higher.”

Central London is a notoriously difficult market for tenants, but the latest figures point to a healthy prime London rental sector, with more renters signing up for properties in 2018 than the year before.

We hope that 2019 will follow in a similar vein, with more and more tenants being matched to their ideal properties!

Recent Articles

Tenant Fees Bill becomes law

The Tenant Fees Bill, new legislation to prevent landlords and agents from charging renters various fees for moving, has become law

Read more

Growth predicted for the PRS

Forecasts say that investment in the PRS could grow to £75bn in the next five to six years

Read more

Laws to tighten on electrical safety

New laws are to be introduced to improve electrical safety for both landlords and tenants

Read more

Rents on the rise due to lack of supply

Rents are rising across the UK thanks to a lack of supply, according to the latest Rental Price Tracker from Rightmove.

Read more

London’s rental sector weathered the storm in 2018

New data from Knight Frank indicates a healthy rental market in prime central London

Read more

Request information

Would you like to receive more information about buy-to-let investments? Fill in your details below and one of the team will get back to you.
Your name is required
Your email is required

By submitting your details you consent to being contacted by Knight Knox by telephone and email for this and similar property investments