_KF Insight: Mayfair lettings market the strongest performer in prime central London

Residential rental values are rising faster in Mayfair than any other prime central London neighbourhood following the area’s renaissance, said Rahim Najak, head of Mayfair lettings at Knight Frank.

Mayfair rental values rose 5.1% in the year to August, which compared to an average increase of 0.9% in prime central London and a 1.4% decline in prime outer London.

“New-build schemes and public improvements have acted as a magnet for tenants,” said Rahim. “Alongside the arrival of international stores and restaurants, it’s as if a brand has been created for the whole area.”

New-build developments include 20 Grosvenor Square, 1 Grosvenor Square and Clarges Mayfair. Additionally, the Crown Estate has developed a high-end scheme with properties for rent in Sherwood Street in nearby Soho.

“These are developments that all offer a five-star hotel environment that tenants appreciate as somewhere they can just unpack and live,” said Rahim.

Knight Frank's Rahim Najak

Furthermore, the Grosvenor Estate has revamped areas including Mount Street while the Crown Estate has also spent in the region of £500 million transforming the area around Jermyn Street as part of the St James’s Gateway project.

Tenant demand has been further boosted by the fact that rental values declined in prime central London throughout 2016. The decline was due to the fact more property owners hedged their bets in a weaker sales market and opted to let out their property, thereby increasing supply.

“On top of everything else, it means that Mayfair has become a destination for people who had previously discounted it as an option, including students and corporate tenants,” said Rahim. “We hadn’t previously seen many relocation agents in Mayfair but we do now.”

The Mayfair Lettings team is on hand to help with any query relating to letting property in the area.