Rents for “super prime” properties in London have been holding up despite the tough economy, according to a report.
Rental values in the capital’s super prime market, where tenants pay £5,000-plus per week, are broadly unchanged compared with a year ago, Knight Frank said.
Shortages of supply and tenants’ desire to have facilities such as gyms on site are helping support super prime rental prices, it said.
Knightsbridge, Kensington and Hampstead were the most popular neighbourhoods for super-prime tenancies agreed in the year to September, it added.
Tom Bill, head of UK residential research at Knight Frank, said: “The shortage of supply in the lettings market above £5,000 per week in London is in stark contrast to the wider market. It means that rents have been stable at the top end even against the backdrop of a global pandemic that saw tenant demand initially shift outside the capital.”
Tom Smith, head of super prime lettings at Knight Frank, said: “If a property came on a year ago at £20,000 per week, it’s coming on at the same price today. There is such little new supply coming through that this will support rents for some time.”
He added: “We have seen some migration away from central areas. Tenants are prioritising home gyms over gym membership and placing more priority on outdoor space.
“However, if they are moving outside the capital, they need to know they can get back quickly and many are adding a place in the country rather than replacing their London base.”