Rents in prime areas of central London will increase by 1% this year, according to Knight Frank.
- London’s prime areas will see rents rise by 1% this year
- Rents remained stable between April and May
- Kensington saw rental fees rise by 2.6% in May
The prime property rental market in London showed signs of stability in May, according to the latest research from Knight Frank.
Last month saw the capital’s rental fees remain unchanged, the property specialists revealed, which suggests improvements in the sector.
This follows a decline of prime central London rents of 0.3% for 2013 so far, and is the first month rents have not dropped since June 2012.
Liam Bailey, Global Head of Knight Frank Residential Research, stated the rental market will continue to improve over the rest of 2013, noting that the cost barriers of owning a home and the positive outlook for employment and business in the city will boost the sector.
“Rents in prime central London will increase by 1% this year, before posting strong growth in 2014 and beyond,” he said, adding: “There are pockets of rental growth within prime central London.”
Areas that fared well in May include Kensington where rents have increased by 2.6% and Marylebone where fees have gone up by 1.9%.
Mr Bailey commented: “The higher levels of activity in May have helped bring an end to ten months of declining rents.”
Knight Frank also highlighted positivity for the future of the rental market in the capital, revealing the number of new tenancies has risen by 39% in 2013 compared with the first five months of last year.
Earlier last month, Knight Frank reported a high level of optimism in the private rented sector in the UK. Its Knight Frank/Markit House Price Sentiment Index revealed an increase of confidence from 60.6 to 62.4 from April to May, which is the highest level for three years.