Property data consultancy LonRes says figures for September show the prime London lettings market as subdued.
Annual rental growth fell slightly in September to 2.2% but average rents across prime London are 33.9% above their 2017-2019 (pre-pandemic) average.
There were 16.4% fewer lets agreed in September than a year earlier, 56.3% below the 2017-2019 September average.
For the year-to-date, lettings activity is 2.9% ahead of where it was at the same point in 2023. New letting instructions in September were 6.7% lower than a year earlier, suggesting that activity may be constrained by a lack of new supply.
The number of available homes to let across prime London at the end of September fell compared to August but there were 8.9% more homes on the market than a year earlier. This was 46.9% fewer than five years ago.
Time on the market data gives an indication of the strength of demand. Across prime London and for all price points, the average time between listing and move-in was 59 days in September.
This is slightly slower than the 52 days recorded last September, but quicker than the average of 72 through 2017 to 2019. Broken down by rental values, lower priced properties let faster than higher priced ones.
All bands have followed a similar pattern over time, with current levels a little slower than last year but much faster than pre-2020.
Nick Gregori, head of research at LonRes, comments: “Constrained supply continues to hinder the prime London lettings market. New instructions and agreed lets both fell in September for the second month in a row. The higher activity of the first half of 2024 has now faded away, with available stock rising by 8.9% over the past year. Annual rental growth in the low single figure range continues.”
This article is taken from Landlord Today