Seasonal year-end slowdown was a contributing factor, alongside the impact of global economic uncertainty, which has dampened demand. Monthly growth in the prime central London rental market actually slowed to zero in December - although the annual increase reached a three-year high of 3.3%.
Tom Bill, head of London residential research at Knight Frank:
“Total returns, which include rental income and capital value growth, outperformed a series of other asset classes in the year to November, proving its resilience as an investment. For example, while commodity prices have fallen markedly, partly due to concerns over the Chinese economy, demand among Chinese tenants and buyers for prime central London property has increased, buoyed by its safe haven appeal. This is underlined by the fact the number of Chinese tenants increased by almost fourfold in 2014 compared to 2013.”
