Leading central London lettings agency E J Harris has reported a significant summer upturn in Mayfair rental values with the number of viewings rising 20% and new prospective tenants rising 25% over the last three months.
Using research from their own client database and drawing on wider industry figures, E J Harris reveal that Mayfair has seen a 7.5% increase in rental values over the last twelve months and a 4.1% increase in rental values in Prime Central London, achieving an average gross yield of 2.92%.
Over the past twelve months the lettings market has seen consecutive growth, having benefitted from the uncertainty surrounding the outcome of the general election as savvy investors entered the buy-to-let market to avoid the possibility of further taxation and cautious purchasers opted for renting over buying.
E J Harris report that the lettings market buoyancy is set to continue over the next few months, with an increasing number of instructions for sale rapidly moving across to the lettings market, after a post-election spike in prices has failed to materialise. According to the lettings agency, demand is particularly strong north of Hyde Park and east of Mayfair.
Highlighting the post-election bounce on the Mayfair lettings market, E J Harris reports a 40% increase in corporate relocation enquiries over the last three months compared to the same period a year ago, which is a reflection of the health of the wider economy, increased budgets and renewed confidence across all sectors.
A key player in the seasonal lettings upturn are the increasing numbers of wealthy overseas students – Mayfair’s young elite - who make up the biggest portion of the private rental market for high-end properties in London’s most sought after addresses and currently occupy more than a 30% of E J Harris’s apartments priced from £600 to £1000 (approx. €853 to €1422) per week in Mayfair. According to E J Harris, the majority of overseas students in Mayfair originate from privileged families from Asia, the Middle East, Russia, United States and India looking to live in luxury private residences throughout their education.
Source: E J Harris
