After a quieter winter period, the Prime Central London lettings market is showing signs of renewed momentum, according to new figures from Winkworth.
The AIM-listed estate agency has reported a 55% year-on-year surge in lettings valuations across its six PCL offices in Q1 2025, alongside a 35% quarterly rise in tenant enquiries compared to Q4 2024. This upturn, says Winkworth, reflects “traction cautiously rebuilding” in the capital’s high-end rental sector – with notable demand coming from American expats and corporate relocations.
Demand Outpacing Supply
Despite this increased interest, available rental stock remains constrained. Winkworth’s data reveals that 12.5% fewer rental properties were on the market at the end of March compared to the same point in 2024. New lettings agreed through Q1 were also down slightly year-on-year, by -3.7%. This supply-demand imbalance has helped support rental values, even as tenant preferences and scrutiny become more pronounced.
Tenants Want Quality – and They’re Willing to Wait
“Tenants are becoming noticeably more selective,” says Rob Oatley, Director at Winkworth Pimlico & Westminster. “Features like storage, dishwashers and natural light are now non-negotiable. Everything is scrutinised more closely.”
This quality-first approach is particularly evident among corporate tenants and high-net-worth individuals relocating from abroad – especially from the US. Lucinda Richardson, Lettings Director at Winkworth Notting Hill, notes strong demand for well-presented two-bedroom homes with outdoor space, often for executive clients with generous relocation packages.
Landlords Navigate a Shifting Landscape
Landlords are facing fresh pressures from regulatory changes, including those proposed in the evolving Renters’ Rights Bill. But Winkworth says many of its clients in the prime sector remain resilient and focused on long-term investment stability. “While some long-standing landlords are choosing to exit the market in response to tax changes and anticipated reforms,” says Richardson, “demand remains robust – particularly in the prime segment, where quality stock continues to attract strong interest.”
Outlook: A Delicate Balance
Winkworth highlights a “delicate supply-demand balance” in the PCL lettings market. Stock remains limited, but targeted, high-quality demand – especially from international tenants – is providing strong support for rental prices.
As the year progresses, Winkworth expects the market to continue stabilising, with activity picking up in line with seasonal patterns and further clarity around legislation. For landlords and tenants navigating today’s prime rental landscape, attention to detail, presentation and strategic pricing remain key to success.
Source: PrimeResi
