Last week Knight Frank and Savills reported on activity in the London sales and lettings markets. Now JLL (Jones Lang Lasalle) also confirms that sales volumes are increasing and prices and rents rising as the city emerges from the effects of the pandemic. But the outlook is fraught with uncertainties.

Director of UK Residential Research at JLL, Marcus Dixon, says:

“Two years on from the first lockdown we had hoped that 2022 would bring greater stability, allowing the much-anticipated prime central London (PCL) recovery to progress. Sadly, this hasn’t come to pass, with the war in Ukraine, the ongoing impact of Covid-19 and concerns over the rising cost of living all preying on the minds of households.

Yet despite a far from certain year ahead the PCL market has again proved resilient.”

“We still expect PCL to be one of the best performing markets in 2022, as the resurgence of the city continues.”

The JLL PCL Sales Index recorded a 3.3% annual increase in achieved prices in Q1 2022, with prices up 0.6% on Q4 2021.

Achieved prices are now 4.7% higher than pre-pandemic in Q1 2020 but there is a10% fall in properties on the market now compared with the quarter end in Q1 2021.

The JLL PCL Rental Index recorded a 15.0% annual increase in achieved rents in Q1 2022, the highest annual rise for over a decade.

This followed a 10.4% annual fall a year ago in Q1 2021, when JLL saw achieved rents bottom out across PCL.

Achieved rents are now 3.1% higher than pre-pandemic in Q1 2020 but letting stock levels are down a massive 71% on Q1 2021.