Rental landscape is changing in PCL; LCP report
Landlords in Prime Central London (PCL) have reason to be positive this year, reports London Central Portfolio, as weekly rents have finally nudged up by 4% overall to reach an average of £1.05 per square foot whilst void periods fell by 25%. Although the most internationally favoured areas have come out on top again, in terms of highest weekly rents paid per square foot, Knightsbridge, last year’s most expensive area, actually saw the largest fall in rents (11% to £1.22) losing first place to Mayfair and St James, which clocked up an average of £1.31.
New research, conducted by LCP on their fund portfolios, shows that tenant priorities are also shifting. The trophy status of living in the most globally renowned areas is being trumped by traditionally less well known areas with buzzy atmospheres and convenient transport links to the City, Canary Wharf and Heathrow.
Rents in Knightsbridge and Mayfair are falling, whilst the increasingly fashionable Marylebone remains the most popular location amongst London’s tenants, showing a 23% growth in rents to £1.13. Marylebone is now the third most expensive area, joining the prestigious £1.00 High Club where weekly rents stand at over £1.00 per square foot. Also joining the Club for the first time was South Kensington, following a 14% increase in average rents. Notting Hill, however, has been relegated with weekly rents falling to 93p per square foot.
