Lettings volume increased in London's prime market in first half of 2017
Lettings volumes in the prime London housing market increased in the first half of 2017 but it was not a uniform pattern across all price brackets, the latest analysis shows. The number of tenancies agreed across the prime London market in the first six months of 2017 was 7.2% higher than 2016 LonRes data shows, with the biggest growth in demand in the sector below £1,000 per week where the number of tenancies rose 9.8%. Over the same period, the number of super prime tenancies, that is £5,000 plus per week, increased to 56 from 47, a record for the first half of the year. Below £1,000 per week there has been a continuing acceptance of renting as a tenure model, in particular among younger tenants. The latest Knight Frank tenant survey shows they are likely to remain the largest group in the private rented sector until 2021. It explains that affordability constraints also curtail some tenants’ plans for a house purchase, resulting in a longer stay in rented properties as they save for a deposit. According to Tom Bill, head of London residential research at Knight Frank, demand in the super prime lettings market is being driven largely by uncertainty over the short term outlook for price growth, which remains linked to tax changes that include higher rates of stamp duty.
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