Many investors will know that rental yields in prime central London are typically among the lowest in the UK. However, a new report from Knight Frank reveals the part of prime central London that is performing the best for rent price growth…
It’s true; while rental yields are generally quite low in prime central London, there are still attractive returns to be achieved in the heart of the capital.
New data from Knight Frank reveals that rent prices in Mayfair have increased by an average of 5% over the past 12 months. This is more than anywhere else in prime central London.
Public realm improvements and a series of high quality, new build developments have led to increased demand for homes in the area, the property firm reports.
The new research also reveals that the average length of a tenancy in prime central London has risen to more than 16 months over the past two years, owed in part to the fact that continuing uncertainty in the property sales market, around the trajectory for house price growth, means that tenants are more prepared to commit to longer tenancy periods.
The number of tenancies agreed per Knight Frank office in prime outer London rose to a three-year high in July, thanks partly to strengthening demand among corporate tenants.
Knight Frank’s report supports a separate study from Strutt & Parker, which found that take-up of new tenancies in prime central London in the second quarter (Q2) of the year rose significantly compared with the same period of last year.
If you own rental properties in prime central London, how have you seen the market shift in the past year?
For those of you thinking about investing in the heart of the capital, look at studies such as this one to determine the hotspots that you should be targeting.