Prime London lettings markets boosted by summer surge

Property consultancy JLL says there’s been a noticeable rise in prime Central London lettings activity. 

Average rents rose 0.9% from Q1 to Q2 2024, bringing annual growth to 2.1%, and indicates a strong market for the summer period. 

Throughout Q2, the JLL Prime Central London Index saw strong demand for rental homes, with rents rising by 2.4% for houses and 0.6% for flats. Demand for larger rental homes continued to increase, with the number of homes let priced at £3,000 or more per week up by 13.4% in Q2 2024 compared to the previous year. 

The market has also seen increased demand for smaller properties, with flats seeing a 16.3% jump annually and an 8% increase from Q1. JLL attributed this to public uncertainty in the lead up to the general election coupled with higher mortgage rates which has resulted in prospective buyers delaying purchases. 

Looking towards the second half of the year JLL suggested that recent change in Government has sparked a positive response from mortgage markets. It points to signs of a potential reduction in the base rate, which has led major lenders such as Barclays, HSBC, Halifax, and NatWest to announce reductions in fixed-rate mortgages. This development should foster competition among lenders and is expected to boost sales as buyer confidence grows. 

As the lettings market in the prime Central London market has witnessed a notable increase in stock coming onto the market and a rise in new applicants looking to move over the summer months JLL cited the potential for further rental increases in the third quarter.