A sharp increase in the number of new super-prime rental properties has resulted in the emergence of a two-tier housing market across the home counties, according to research by Knight Frank.
Activity in lower price brackets has proved robust, reflecting stronger rates of rental growth for smaller properties.
The overall riser in rental growth, between July and September 2016, reverses the trend seen in recent quarters in the UK and London markets.
The number of super-prime properties placed on the market between July and September saw an 81% year-on-year increase, while prime rents across the home counties increased by 0.5% between July and September.
Jemma Scott, a partner at Knight Frank, said: “The latest figures show that Home Counties lettings are equally affected by the global markets as prime central London, which is evidenced in the emerging two-tier market. The 81% year-on-year increase in super prime lettings stock, coupled with an increase of tenant enquiries and rental growth, reflect the desire of clients and tenants alike to take advantage of the lettings market.”
“The steady increase of instructions suggests that clients and tenants are taking a longer term perspective, confident in future prospects and preferring to wait before committing to a purchase. Given the additional cost of stamp duty, it is unsurprising that HNWI’s are prepared to rent in the Home Counties, especially if they have relocated for educational or business purposes. As a result, our teams are incredibly busy, and we do not see any reason why it should not continue to grow as prospective tenants continue to seek lifestyle, space and good schools.”
So-called super prime rental properties are properties with an asking rent of above £15,000 per month.