_KF Insight: Lettings Activity in Canary Wharf Rises at the Fastest Rate in Prime London

The Canary Wharf lettings market has shrugged off the effects of Brexit, recording a surge in activity over the last 12 months.

The number of new tenancies agreed in Canary Wharf in 2018 was 35% higher than in 2017, Knight Frank data shows. It was the highest increase across any Knight Frank office in London.

Speculation has grown since the UK’s decision to leave the EU in 2016 that a large number of jobs in London’s two financial districts would be lost to European capitals. However, analysis undertaken by Reuters in September found that as few as 630 finance jobs had been moved or created overseas since the referendum. 

"The story is that all these finance jobs are leaving the UK, but in our experience that just isn’t the case,” said Chris Paxton, head of Canary Wharf lettings at Knight Frank. “Of course there was a lot of talk in the six months after the vote but now it’s not even a conversation that comes up.”

Chris Paxton, Head of Lettings, Knight Frank Canary Wharf 

The fact that rents have fallen in recent years has enhanced the appeal of the area, which is home to a range of companies including investment banks and has a working population of about 120,000, says Chris.

Average rental values in Canary Wharf fell 8.5% in the four years to January 2019. 

"Pricing has come down enough to make it attractive versus other areas including the City,” said Chris, who believes the arrival of a Crossrail station and the creation of the new Wood Wharf district will provide an added boost to demand. “Nothing is going to change the fact that this area will appeal to young professionals who want to be conveniently located for work.”

If you are thinking about renting or letting your property in Canary Wharf, please get in touch with one of our team canarywharf@knightfrank.com