Tenant demand is rising though supply is tight in London\u2019s prime markets, driving up yields for landlords, Knight Frank analysis shows.<\/p>\n
There were 12% more tenants registering in December year-on-year, while viewings increased by 5%.<\/p>\n
However, the number of new rental listings in London last year was 5% lower than in 2024, with factors like the Renters\u2019 Rights Act prompting landlords to sell.<\/p>\n
Jon Reynolds, head of lettings in the north, city and east London region at Knight Frank, said: \u201cThe early days of January are busier than we would normally expect, which follows a rally towards the end of December.<\/p>\n
\u201cThere appears to be some positivity in the market and areas where stock levels are healthy have seen robust enquiry levels. The feeling at the moment is one of cautious optimism.\u201d<\/p>\n
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The one section of the market where the number of tenancies rose last year was the super-prime (\u00a35,000+ per week) price bracket.<\/p>\n
It was largely due to uncertainty in prime sales markets following changes to tax rules for non doms and wider speculation around wealth taxes ahead of November\u2019s Budget, which led to more wealthy individuals renting instead of buying.<\/p>\n
The number of super-prime tenancies started in 2025 was 17% higher than the previous year, Knight Frank data shows.<\/p>\n
Rents in prime central London rose 1.7% in the year to December, which compares to a rise of 0.7% recorded in 2024.<\/p>\n
Meanwhile, an increase of 2.5% in prime outer London outstripped the rise of 1.3% seen in 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"
Tenant demand is rising though supply is tight in London\u2019s prime markets, driving up yields for landlords, Knight Frank analysis shows. There were 12% more tenants registering in December year-on-year, while viewings increased by 5%. However, the number of new rental listings in London last year was 5% lower than in 2024, with factors like […]<\/p>\n","protected":false},"author":1,"featured_media":7348,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-7347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n