Rental demand gets Brexit boost in prime central London

The rental demand in Prime Central London experienced a surge in June, according to research.

New index data released by Knight Frank on Friday 8 July revealed the highest number of prospective tenants in nine months and the third highest number of viewings on record.

The number of transactions also jumped by 29 per cent in the week after the EU referendum and by 29 per cent in the final week of June compared to the same time in May. The prime central London yield was 3.1 per cent in June and the number of prospective buyers between £5 million and £10 million also rose by 8 per cent in the year to June.

Annual rental value growth fell -3 per cent in June, continuing its recent decline due to higher stock levels, which rose by over % 24 per cent year on year.

According to the research, the current financial uncertainty would mean some tenants, particularly in financial services, would rent for longer.

Tom Bill, Head of London Residential Research at Knight Frank,  commented:

“Uncertainty over the result of the referendum has been replaced by uncertainty over the more nuanced question of the UK’s relationship with Europe and demand will strengthen further as clarity emerges surrounding key negotiating positions.