_Super-Prime Lettings market has strong start to the year

A record number of tenancies were agreed above £5,000 per week in London during the first four months of the year, according to Tom Smith, Knight Frank’s head of super-prime lettings.

In total, 41 lettings transactions were agreed between January and April 2019, which was the highest figure on record for the first four months of the year, a traditionally less active time for the lettings market. It compared to an equivalent figure of 26 last year and 34 in 2017.

“While demand in the super-prime sales market has picked up over recent months, the finely-balanced political backdrop means the lettings market has also had an unseasonally strong start to the year,” said Tom Smith, head of super-prime lettings at Knight Frank.

The number of prospective tenants viewing properties above £5,000 per week has also been rising. The figure was 32% higher in the year to April 2019 compared to the previous 12-month period, Knight Frank data shows.

Meanwhile the rolling annual total for super-prime lettings was 145 in April and 146 in March this year, which was the highest figure recorded for six years.

“Renting affords our clients the luxury of flexibility,” said Tom. “The uncertain political situation also explains why we are seeing the re-emergence of super-prime tenancies with ‘option to purchase’ clauses written into the contract, so renters can effectively ‘try before they buy’. With a leading market share of 35% of the super-prime lettings market, Knight Frank is in a uniquely privileged position to advise.”

Underlining the relative strength of the super-prime sales market, there were 38 sales in London above £20 million in 2018, which was the highest figure since 2014.

The increase was a response to price adjustments, the fall in the value of the pound, the ongoing appeal of London for high net worth individuals and the attraction of real assets, themes analysed in our Wealth Report 2019.