Prime market rents in the English Home Counties slipped by an average of 0.8% during the third quarter of 2015, despite boosted activity levels.
Annually however, rents are up 4.1% on the same period twelve months ago.
Seasonal
The prime rental market in the Home Counties tends to be seasonal, with the three months leading to September often the busiest of the year, with tenants looking to complete moves before the start of the next school year.
2015 saw no exception to the rule, according to new data released by Knight Frank, which shows the number of tenancies agreed in the three months to September was 54% higher than in the previous quarter.
While activity has remained robust, rising stock levels across the market have meant that some landlords have been willing to reduce rents in order to stay competitive.
Relocation, Relocation, Relocation
Research executive Oliver Knight noted that, ‘as ever, demand from individuals relocating for work continues to form a significant proportion of the market, especially in the prime commuter hotspots of Ascot, Cobham and Esher where corporate tenancies accounted for 42% of all deals agreed over the three month period.’[1]
‘This corporate demand for rented accommodation has been particularly strong from individuals working in the technology sector,’ Knight continued. ‘The share price of technology businesses has performed well this year, especially when compared to the banking and oil and gas industries.’[1]
Mr Knight also pointed out that the prime market continues to be attractive to international tenants with 38% of new renters during July in September coming from overseas.
[1] http://www.propertywire.com/news/europe/uk-home-counties-property-2015102711136.html