Prime rents across the Home Counties are experiencing minor decline, according to the latest report from Knight Frank.
2016 saw prime rents in the Home Counties fall by 0.8 per cent in 2016 following a 1.6 per cent decline in the last quarter of 2016. The slight downward trend appears to come as a result of stock levels at the top end of the market start to grow as part of the impact of tax changes. This is demonstrated in the fact that Knight Frank was instructed to let 39 per cent more properties in the final quarter of 2016 than the same period the previous year
However, activity levels picked up towards the end of the year with the number of tenancies agreed between October and December up 12 per cent year on year. There was also a quarterly growth of 16 per cent. The number of viewings also rose 17 per cent in comparison to 2015, while the volume of new prospective tenants increased by 28 per cent.
The majority of demand was focused on the lower end of the prime sector, priced at below £4,000. Corporate enquiries offered the market a boost, with a number of company executives moving to the Home Counties during Q4 of 2016. 77 per cent of December’s corporate enquiries had budgets of £1,000 – £4,000 per month.