Due to a declining level of stock annual rental value growth has turned positive in prime central London.
Analysis conducted by Knight Frank has shown rents increasing by 1.1% year on year in December.
The average gross yield in prime central London was now 3,35%, the highest in more than six years, and in prime outer London it was 3.5% the highest in almost four years.
Rightmove UK’s largest property listing portal has show that New lettings listings in prime central and prime outer was 13% lower in 2018 compared to 2017 while the overall number of listings declined by 21%.
An average gross yield of 3.35% in prime central London in December was the highest figure in almost seven years. Meanwhile, a gross yield of 3.5% in prime outer London was the highest in almost four years.
Indeed, total returns in prime central London outperformed a range of other asset classes in 2018. A decline of 1.2% was relatively modest compared to a 8.7% decline in the FTSE 100 total return index, or a 14% decline in the S&P GSCI world commodity index and a 70%+ fall in the value of Bitcoin.