Prime central London rents edged higher in February, increasing by 0.7% in the preceding 12 months according to Knight Frank.
Over the same period, Prime outlet London rents increased by 1%.
In contrast, rental growth in both regions had been close to 20% in the 12 months to February 2024.
Knight Frank has described prime London rents as being in a “holding pattern”, with signs of nervousness identified amid upcoming legislative changes.
While the number of new rental listings in prime central and prime outer London in February was 12% higher than three years ago, it was 5% lower than the same month last year.
According to Knight Frank, this suggests a degree of hesitation among landlords, which will maintain or increase upwards pressure on rents.
Meanwhile, demand is holding steady. The number of new prospective tenants registering in the first two months of this year in London was 1% higher than last year, Knight Frank data shows. The number of tenancies started increasing by the same amount.
“It has felt like business as usual in the first two months of the year,” said John Humphris, head of relocation and corporate services at Knight Frank. “Although stock is in short supply in some lower-value markets.”
