Corporate Relocations on the Rise
The corporate relocation sector has been particularly active in 2025. The number of enquiries from companies looking to move staff to the UK in the first seven months of the year is up 8.5% compared with the same period in 2024.
Demand is coming from a broad range of industries, including energy, finance, professional services, legal, and technology. London’s time zone, global connectivity, and deep talent pool remain key draws for multinational firms.
The city’s tech sector is also playing a role. Cost-cutting strategies and the rise of AI have strengthened the market position of global players like Meta, Apple, and Amazon, while several U.S. law firms have expanded their London offices to position themselves as European leaders in mergers and acquisitions.
International Students Add Fuel to the Market
Another factor supporting prime rental demand is the growing number of overseas students. UCAS data shows a 2.2% year-on-year rise in international student numbers, with the largest increases coming from China (up 10%) and the U.S. (up 14%).
This influx creates additional competition for high-quality properties in well-connected locations, particularly in areas near top universities.
Rents Rising at the Fastest Pace in a Year
According to recent market analysis, average rents in Prime Central London rose by 1.7% in the year to July — the strongest growth rate in 12 months. In Prime Outer London, the figure was slightly higher at 1.8%, marking the best performance since last October.
Tight Supply Keeps Upward Pressure on Prices
The main factor behind rising rents is restricted supply. More landlords are selling up, driven by a combination of the prospect of stricter energy efficiency requirements and the incoming Renters’ Rights Bill, which could make it harder to regain possession of a property and increase the risk of void periods.
The number of new lettings instructions in London over the past year was 9% lower than in the previous 12 months.
Some landlords are still testing both the lettings and sales markets before committing, but with robust demand from both corporate tenants and students — and fewer new properties becoming available — rental growth is expected to continue through the rest of 2025.
Thinking of letting your property?
Our local Winkworth offices have deep expertise in London’s prime rental market and an extensive network of corporate and international clients. Contact us today for a free rental valuation and to learn how we can secure the right tenant for your property quickly and efficiently.
Source: PrimeResi
