Local tenant nationalitY
2010, 2011, 2012 lETTINGs
Lettings fORECAsT
Bigger budget corporate
movers were noticeable by
While prime central London
as a whole enjoyed increasing
30% their limited number in
Europe the latter part of 2012 –
rental activity through the
a reflection of the slowing
first half of 2012, there was
an inevitable pause for breath of City recruitment.
in the third quarter with
Notting Hill and Kensington lettings
the impact of the Jubilee are generally quick to feel a positive
30 Europe
%
2 africa
%
and Olympics. 30% United Kingdom 1% South america change in sentiment however, and
24% North america it is likely that corporate activity
6% Middle East will fuel the upper end of the local
A high proportion of deals were at 5% asia
letting market in 2013. Demand in
the very top end of the market (above 3% australasia
lower price ranges is likely to reflect
£3,000 per week); in Kensington and the changing UK model, as we
Notting Hill more than a quarter of lets acclimatise to letting for longer.
between January 2010 and June 2012 marKet coverage data
were agreed at rents above £2,000
per week. The high level of tenancy
renewals in Kensington, which stands rental growth
at an impressive 80% for 2012, suggests Prime central London has seen 5.8%
many tenants are happy with their choice rental growth over the last five years,
of property, location and agent. outpacing less central prime areas.
KenSington rental levelS (pW)
37% corporate lets
of rents £500 – £1,000 In the second quarter of 2012, 12%
of lets in prime central London were
Highest rent achieved
to companies – higher than the all-
£11,500 London average.
Average rent (Jan 2010 – June 2012) recommended prices versus
achieved prices
£1,573 8% of rents under £500
37% of rents £500 – £1,000
Savills prime central London offices
Lowest rent achieved 29% of rents £1,000 – £2,000
achieved on average 98.5% of the
recommended rental price over
£337 14% of rents £2,000 – £3,000
12% of rents above £3,000 quarter three of 2012.
savills track record | 7