Prime lettings market boosted as ‘London leavers’ head back to office

The number of tenancies started in prime London locations in September was the highest monthly total in the past 10 years, an estate agent has reported.

The number of new prospective tenants registering was 56% higher than in September last year, Knight Frank said.

Offices reopening, overseas tenants arriving in bigger numbers and people returning to universities are behind the figures, it suggested.

The estate agent added that average rental values rose on a quarterly basis by the largest amount in a decade in prime central (2.8%) and prime outer London (2.6%).

The prime property figures broadly cover the top 10% of properties by value within Knight Frank’s office patches.

David Mumby, head of prime lettings at Knight Frank, said: “We are seeing competitive bidding across prime central London markets, with new tenants mainly being ‘London leavers’ who now are returning to the office, and international students who are still agreeing properties purely based on virtual viewings.”