Prime central London rents climb for seventh-consecutive month

Prime central London rents climb for seventh-consecutive month

The early weeks of autumn have brought nothing but good news for buy-to-let owners in the capital so far, and it seems like the positives keep coming for this group, with a new report stating that rental prices have climbed yet again.
In the last few weeks, it has been reported that the monthly rate charged by landlords is now at an all-time high, while central London has been driven forward in the rental sector by the fact that more and more young people are now looking to rent. This has meant a rise in demand for smaller one and two-bedroom properties. 

And now, according to a report from Knight Frank, September was a month in which the cost of renting a property climbed for the seventh month in a row. Although this growth was slower than in the months preceding it, the 0.2 per cent increase will still be a positive for owners. 

Overall, this growth means that the annual rise rate now stands at some 1.6 per cent. This is the highest yearly growth that has been seen at any point in the past two and a half years, according to Knight Frank, showing just how strong the rental sector currently is in the capital. 

Knight Frank believes that this rise in prices has been largely driven by the fact there are now more and more people looking to rent in London. In September, it said, the number of tenancy applications in the area was 22 per cent higher than a year ago. Meanwhile, the number of completions climbed by some 19 per cent in the same period. 

Tom Bill, head of residential research for London at Knight Frank, believes that these positives in the market for owners will only continue in the lead up to the general election.

The uncertainty over how the vote will play out in May of next year is likely to dampen demand for purchases, which will mean a higher volume of tenancy applications in the short term.

"While there is no marked trend of vendors deciding to become landlords and buyers becoming tenants, it is happening to some degree and there are increasing instances of properties being marketed to both the sales and rentals market," Mr Bill said.