The UK remains an “attractive destination” for affluent overseas workers with prime London rents putting in their strongest rise in a year, data from Knight Frank shows.  

Enquiries in the first seven months of the year from companies looking to send staff to the UK were 8.5% higher than 12 months ago, according to the property agent. 

This resulted in average prime central London rents rising 1.7% in the year to July, which was the strongest increase in a year. While prime outer London lettings rose 1.8%, the strongest since last October. 

The agent says these rises defy gloomy UK numbers. 

UK retail sales rose 0.9% in June, compared to a fall of 2.8% in May, but fell short of a 1.2% consensus uplift. 

While the economy is expected to have grown by just 0.1% in the second quarter when official data is released on Thursday, compared to a 0.7% jump in the first three months of the year. 

“Despite the uncertain backdrop, demand from the corporate relocation sector in London and the surrounding area has held firm,” says Knight Frank head of UK residential research Tom Bill. 

He adds that corporate relocations to the UK typically come from the energy, finance, professional services, legal and tech sectors. 

In recent months, Meta, Apple and Amazon posted strong financial results, while several US law firms have boosted their presence in the UK. 

“London is still seen as a premier location to send staff,” adds John Humphris, head of relocation and corporate services at Knight Frank.  

“There is a critical mass of talent already here that pulls people in, as well as the appeal of the language and time zone.” 

Also, restrictions to non-dom rules by the previous Conservative and the current Labour government over the last 18 months are “not particularly relevant” for the corporate relocation market, Humphris points out. 

Bill adds that “healthy demand and tighter supply mean we expect rental value growth to keep climbing through the rest of this year”.