LONDON & UK RENTAL MARKET UPDATE
Rents Fall Close To 10%
In Prime Central London, in many of the locations where international Corporate Assignees choose to live, rents have fallen close to 10% since the start of the year.
These include Mayfair, Chelsea, Marylebone, St John’s Wood (an American and international favourite) and Notting Hill of movie fame.
This is due to a number of factors including the oversupply of new build properties elsewhere in London which are pulling rents down and the impact of Brexit. Too many properties chasing too few tenants in these quality price brackets. The rental market in London and UK is driven by national economic drivers whilst the sales market (in London) is very much internationally driven.
In London’s commuter belt, known as the Home Counties, so far rents have remained flat since the start of the year. However there is a variation on property type where rents on many family homes have dipped. Rental properties are cheaper outside of London. Many domestic London workers cannot afford to live in Central London anymore and have moved out (putting additional pressure on the already overstretched rail system), so both demand and rents have both held up at the lower and mid-market levels.Sources: Curzon, FT, KF.