Average rents in the capital down 2.4% during November

Average rents in the capital down 2.4% during November

According to the latest data from Knight Frank, average rents in prime central London fell 2.4% year-on-year in November, which was the most modest decline recorded in more than 18 months.

Average rental values for existing homes have fallen for more than two years due to rising supply, however this trend is now reversing and declines are bottoming out.

Supply levels have moderated in 2017 following a spike in new lettings properties in the middle of last year, which came after the introduction of the additional rate of stamp duty in April 2016.

A slowdown in the rate of new supply also reflects the fact that fewer would-be vendors are becoming landlords as price declines in the sales market bottom out.

An analysis of Rightmove listings data underlines the trend. The number of listings above £2,000 per month between January and October 2017 in the borough of Westminster was 10% lower than the same period in 2016. The equivalent fall was 12% in the borough of Kensington & Chelsea.

There has also been speculation that recent tax changes would exert downwards pressure on supply as more landlords sell up. While the effect of this trend cannot be discounted, Knight Frank data shows little evidence so far in prime central London among what are typically more equity-rich landlords.


The number of landlords who re-let their property through Knight Frank in the year to October 2017 was 6% higher than the previous 12 months, according to an analysis of new tenancy agreements that excluded extension deals with existing tenants.

Knight Frank said that they expect rental value declines to continue bottoming out and forecast 0.5% growth in 2018 and 1.5% in 2019, based on the fact demand will remain relatively strong versus supply.

The ratio of new prospective tenants to new properties has grown from 2.9 in January to 3.3 in October. Previous cycles suggest that as this number surpasses 3.5, it is accompanied by positive rental value growth.

While supply continues to decline, demand continues to rise.

The number of new prospective tenants registering between January and October increased 16% and viewing levels were 19% higher than last year. Accordingly, the number of tenancies agreed in the first nine months of the year was 16.4% higher than 2016.

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Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

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Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

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Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

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richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

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Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

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maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

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maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

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zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

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Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

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Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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