There’s been a significant improvement in activity across the prime London lettings market in February according to the latest LonRes data. Annual rental growth increased slightly after four months of
falls. The number of newly agreed lets in February increased by 14.2% compared to a year earlier and was 48.7% below the prepandemic February average. New instructions rose last month by 17.6% on a annual basis but the figure remained 42% below the average 2017-19 February level. Across prime London there were 48.1% more properties on the market to let at the end of February than a year earlier, but that figure is 27.3% lower than at the end of February 2020.
Data on discounts and reductions suggest that more balance is returning to the lettings market. The all-time lows for both discounts and price reductions were recorded in Q3 2022, indicating demand significantly outpacing supply. Average rental growth across prime London rose slightly in February to 3.4% taking values to 26.7% above their 2017-19 pre pandemic average.
