Knight Frank is warning that as supply increases and demand drops back to normal levels, so the pressure to drop rents in prime London postcodes is intensifying.
The agency says rental value growth in prime central London (PCL) fell to 3.5% in the year to June, while the figure was 3.6% in prime outer London (POL).
In both cases, it was the lowest figure since July 2021 when the long-let market was flooded with short-let properties during the pandemic.
The number of new lettings listings in PCL and POL combined was 12% below the five-year average (excluding 2020) in May, Rightmove data shows. For rental properties above £1,000 per week, there was an equivalent increase of 39%.
The result is that almost all tenancies agreed in the last month have been below the asking rent or subject to a rent reduction, says David Mumby, head of prime central London lettings at Knight Frank. “It certainly feels like peak pricing has now passed,” he states.
Knight Frank adds that owners at higher price points are typically more discretionary and have been able to switch from the sales to lettings market because property prices in the sales market are flat or falling.
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Iâm not sure anywhere else in the UK can relate to that, rental demand is still very strong.
London must be different to the rest of the UK where demand is very strong and rents still rising.
If this is true, it shows that rents are responding to market conditions & that increasing supply is the way to reduce / stabilise rents, not rent controls!
No let up on rental prices & demand in my area (yorkshire/derbyshire). But london is like a different country compared with the rest of the uk.
Not near me, nothing to rent and prices high. đ¤ˇââď¸
Its an irrelevance , landlords will charge a rent that âmakes it workâ if it doesnât stack up, we will invest elsewhere. Mine have all gone up hugely because they really needed to and they will continue to go up until I feel safe in this increasingly risky business.
Clearly central London operates to different pressures. In the South West there is an ongoing shortage and rents are high compared with average wages.
It is true that some parts of London there have been a lot of new builds and people working from home has caused reduced demand for some properties.
There's about 6 flats available for rent in Inverness at the moment.... Take advantage whilst you can and bang up the rents I say!
Knight Frank, another organisation that believes the world ends at the M25. đ
Thankfully London does end at the M25, demand and rents are still on the up outside the M25, London is in a different country to the rest of us
Andrew, I would build a wall around Londonistan and Citizen Khan, his cohorts and ULEZ could choke on their own fumes.
Methinks Knight Frank are telling porkies and I doubt anyone in there right mind are even considering letting there property especially in London with Labour about to gain power proposing zero chance of ever regaining vacant possession.
At Landlord Investment Show today what a disaster speakers saying all main Parties agree Section 21 is going and still babbling on that we need THE RENTERS REFORM BILL.
Wrong Landlords have not accepted it or consulted, the only consultation the Councils ever had was the general Public who have no input to get the answer they want to bring in all sorts.
Ben Beadle was supposed to be speaking at a Seminar but canât find any trace of his, I want to question him about his actions but no sign of him.
A couple of juniors manning their stall talking the flack but they donât know the Business for sure just there for the Shift.
They still donât get it before Section 21 there was no private landlords, none of them would have become landlords and they are sleep walking back there again.
Perhaps Bungling Boy Beadle DOES read the comments on here and has a 24 hour flu, or something, to avoid meeting his "adoring fans"?
Spot on Micheal but it will be the best part of 20 years before the penny drops and those then in power admit to what a cxxk up the renters reform bill was.
Apologies I was wrong Mr Ben Beadle is here in a Seminar spouting out his rubbish. I interrupted him more than once and he told me to fu-k off which was very rude for a CEO or Iâd been thrown out not a problem when my business or 46 years is been destroyed by him, I am supposed to stand there like a lamb and take it, well no way.
I am shocked that he would use that language! So disrespectful!
Ellie
It doesn't shock me.
I would not expect reasoned argument from someone who considers he is right and the rest of us are wrong.
Thugs and bullies use such language đą. This is looking like he, and his ilk are fully on-side with Labour and their plans.
Michael - did you or anyone else video it? That would go viral!
So what is it? Previous article says rents still shooting up, this article says down. The stuff of nonsense!
Vote reform uk đŹđ§
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