Stemming from a lack of rental stock and high demand for property, the agency says, the average void period in Q3 2022 stood at 9.7 days, which compares to a long term average of 31.8 days.
Big changes can also be seen on agreed rents for re-lets. Here, prices rose by nearly 18% in the third quarter of this year, with overseas tenants returning to London leading to a bidding war, according to the report published by LCP.
And the price for extending an existing tenancy has also gone up, although not quite so dramatically, with the average rise touching 5% on the quarter.
Tenants hail from across the world, with more than 60% arriving from outside the UK and the European Union, the report shows. New tenants from the Asia-Pacific region jumped from making up 13% of the mix in Q2 2022 to 30% in Q3 2022.
LCP chief executive officer Andrew Weir says: “Unquestionably this is another strong quarter for rental activity across prime Central London. As the economic outlook looks uncertain, the number of tenants returning to London and opting to carry on renting has increased.
“Despite the number of external factors affecting the sales market, the rental market is proving to be more buoyant… the trend for longer tenancies continues, with tenancies now running to 23.1 months and void periods an almost non-existent 9 days.
“These longer tenancies are contributing to the shortage of available stock, which in turn adds to price inflation. PCL’s international tenant base may well be amplified by the start of the new academic year and many overseas students returning to London for the first time since lockdown.”