Rents in Prime Central London have risen 7.4% over the course of the past year despite being unchanged for around six months now and despite demand slumping.
That is the view of former ARLA president Lucy Morton, director of JLL’s single-office agency W A Ellis.
“The average rent for properties let in the first quarter of the year was unchanged on the values achieved in the final quarter of last year. However, despite the lack of new enquiries, there was still an 8.3% increase in properties let in the first quarter compared to the same quarter last year, and there’s been a significant increase in the number of properties let in the super prime market,” she says.
Morton says properties let in the most expensive price band (£2,000+ per week) have increased by a third year on year. All but the lowest price band (under £500 per week) registered a rise in the number of properties let.
She suggests there has been an increase in tenant demand from would-be purchasers awaiting the election results.
But she warns that: “Levels of tenant demand as a whole are falling on all but the highest quality and best presented properties, a trend we have been noting over the last few months.” And Morton insists there is an air of caution among tenants who are trying to achieve the best deal as they are aware of an imbalance between supply and demand.