The typical price of renting a luxury property edged up marginally at thebeginning of this year, new figures suggest.
Average values rose 1.3% during the first three months of this year compared to the previous quarter, and by 1.5% compared to the same period a year ago, according to estate agent Savills.
The strongest quarterly rental growth was typically seen in the commuter belt, while there was a less pronounced improvement in central London.
Savills described the current demand for luxury homes in the most affluent areas of the capital as “more discretionary”.
It said six tenants were chasing every luxury London property on its books last month.
Beyond central London, smaller properties in lower price bands have still performed best during the past 12 months.
The strongest quarterly growth was in higher price bands of more than £2,000 a week, with rental properties with five or more bedrooms increasing by 1.2% in the quarter.
Amelia Greene, of Savills, said: “Landlords have been relatively quick to pick up on the return of rental growth, especially with the impending introduction of the Renters Rights Bill.
“But over half - at 61% - of our agents in London say that tenants are expecting to benefit from a fall in rental values, putting us into another period where expectations have to be realigned”.
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