For the first time in two years, prime rental values across the Home Counties are higher.
Rental values in the Home Counties grew on an annual basis for the first time since June 2012. Values were 0.1% higher than in September 2013 and are 2.4% higher than at the start of the year.
However, while annual growth looks positive, a gradual slowdown in the number of corporate relocation enquiries and a desire among landlords to keep void periods to a minimum, meant that between July and September prime rents actually fell by 0.8%.
Unwilling to let their properties sit empty over the winter months, landlords, especially at the top-end of the market, have been willing to accept lower rents as a result. Oliver Knight of Knight Frank Research noted, “the flexibility shown by landlords on rents has helped boost the number of tenancies. The number of tenancies commenced between July and September was 27% higher than the corresponding three month period in 2013.”
There are indications that activity in the Home Counties rental market will continue to strengthen over the coming months. Knight Frank has revealed that the number of potential tenants, both corporate and private, has risen by 37% (July – September 2014) compared to the same period last year.