Taylor Scott International News
Prime rents in the English Home Counties fell by an average of 0.8% in the third quarter of 2015 despite robust activity levels but are up 4.1% year on year, according to the latest data. The prime rental market in these counties around London, tends to be very seasonal and the three months leading up to September are often among the busiest of the year as tenants look to complete moves before the new US and UK school terms start in August or September respectively. This year was no exception, according to the index report from international real estate firm Knight Frank, with the number of tenancies agreed in the three months to September 54% higher than over the preceding three month period. But while activity levels have been robust, rising stock levels across the prime market, have meant that some landlords have been willing to reduce asking rents slightly in order to remain competitive, according to research executive Oliver Knight. ‘As ever, demand from individuals relocating for work continues to form a significant proportion of the market, especially in the prime commuter hotspots of Ascot, Cobham and Esher where corporate tenancies accounted for 42% of all deals agreed over the three month period,’ he said. ‘This corporate demand for rented accommodation has been particularly strong from individuals working in the technology sector. The share price of technology businesses has performed well this year, especially when compared to the banking and oil and gas industries,’ he added. He pointed out that the market continues to attract international tenants with some 38% of new renters across the prime Home Counties market coming from outside of the UK between July and September in Ascot, Cobham and Esher where corporate tenancies are more prevalent this rises to 51%. Individuals from North America were the most active movers during this time, with the start of the American school term in August likely to have been a factor. Taylor Scott International
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