Clerkenwell & City - Lettings Market update

The wider rental market is showing signs of stabilization. Rent growth has slowed, with inflation reaching its lowest point in 3.5 years. Supply has increased by 11% in March compared to the same time last year, while tenant demand has decreased by 7%. Flexible working continues to reshape tenant preferences, with more people willing to commute longer distances for work. Despite concerns about affordability, rents are expected to rise by 4% in 2025.

In Clerkenwell, commercial market activity is on the rise. Great Portland Estates secured a major lease of 11,300 sq ft at 6 St Andrew Street in early 2025, and interest from tenants, including Treatwell, is already emerging. This development builds on the momentum of big names returning to Farringdon’s commercial spaces, such as HSBC at Panorama and Sainsbury’s at JJ Mack.

Additionally, the pied-à-terre market is showing signs of revival. Two properties have been let to part-time occupants in recent weeks, one commuting internationally and the other within the UK. There are also five applicants currently looking for pied-à-terre homes, signalling continued demand for second homes in central locations.

Office rental rates in Clerkenwell have been rising, although full-year data is not yet available. This increase is noteworthy, especially if it outpaces the broader market trends.

In conclusion, while rent growth has slowed across the broader market, the outlook for Clerkenwell remains positive, with a recovering commercial sector and increasing demand for pied-à-terre properties. The market is adapting to new dynamics, and the future looks cautiously optimistic.