AL growth in London’s prime residential postcodes slowed in August as fears over China’s economic slowdown and the quiet holiday period weighed on demand.
Rents grew by 2.5 per cent year-on-year in August compared with 2.9 per cent in July and May’s three-year high of 4.2 per cent, according to Knight Frank’s Global Rental Index released today.
The slowdown follows a strong first half when uncertainty around the General Election and changes to stamp duty rules helped boost rents at the expense of sales.
Knight Frank’s head of London residential research Tom Bill said volatile global stock markets had hurt sentiment in August.
“There is a wider sense of uncertainty around financial markets and China is part of that.
“Because you have a rental market in central London underpinned by financial services, this uncertainty can make tenants think twice before acting that has dampened demand.”