Rents in central London are likely to rise by just 1% this year, Knight Frank has forecast.
The firm points to weak employment in the City, with specialist recruiter Morgan McKinley saying that the number of job vacancies in the financial sector is down 24% year on year.
However, Knight Frank says that an increasing number of tenants in prime central London should come from the technology and media sectors, which now account for 30% of all office take-up.
The firm says that currently, rents across prime central London are either flat or declining, with the single exception of Kensington. In St John’s Wood, rents are down 9.7% year on year.