London’s rents have risen rapidly in 2015. Rising house prices in the capital have made the possibility of home ownership a distant dream for many young people. Thus London’s lettings market has grown substantially.
Much of the increase has been caused by a demographic shift. The number of overseas students coming to study in the UK between 2007 and 2013 increased by 30%. The growth in the number of wealthy students from China and Russia has ensured that prices aren’t just increasing at the bottom end of the market, but at the top as well.
A lettings agent in London describes those pushing up the market at the top end as “glomads”, global nomads who rent in different places around the world travelling for work but also looking for a sociable and exciting lifestyle. This shift drives up both prices and standards, instead of being compared on a local UK level, London’s rents are being compared across Europe, even globally.
This wealthy shift into the rent market has been particularly noted this summer. Letting Agency EJ Harris said rental values increased in Mayfair by 7.5% this year with viewings rising by 20%. A “young elite” makes up 30% of renters pushing the prices to between £600 and £1000 a week.
It isn’t just students, the agency also pinpoints corporate relocations as a reason for the increase. As a serviced apartment provider with a portfolio of properties across London, Clarendon has catered for corporate re-locators for over 25 years. After a busy summer across our apartments, the increase in rents in prime locations in London could be encouraging more who are relocating to dismiss the competitive rental market and instead turn to serviced apartments.
Serviced apartments offer a minimum stay of 90 nights but are more cost-effective than a hotel. With more living space, a central London location close to the office and to central tourist attractions, serviced apartments offer the best of both worlds. With a fully fitted kitchen, modern design and finish, serviced apartments are a comfortable place to stay with mod cons, WiFi and an entertainment package. For corporate re-locators looking for somewhere secure and central to stay, a serviced apartment offers the ideal alternative to the frantic lettings market.
The demographic shift in London which has seen more wealthy business travellers drive up the price of flats, both in the private and rental market, is inevitably going to see more corporate re-locators look for an alternative. Serviced apartments provide both the central location, stylish apartment and competitive rates that appeal to re-locators. It’s the ideal halfway house for those in London for an extended stay.