In certain pockets across London there is huge demand for property. In the business and private rental market the only word to describe it is “booming”.
One of the areas that is doing especially well is Covent Garden. There has been a 25% surge in valuations especially by retail companies attracted by the quirkiness, independent vibe and the space it offers them for their business. Covent Garden is unique in London with its eclectic flare, character and deep rooted culture. All of this makes it highly sought after.
A recent article in the London Evening Standard estimated that by 2017, estates in Covent Garden will command £100m in rents, with estimates reaching a staggering £125m by 2019. It’s likely these locations will only increase in popularity and with that yields and rental demand will only rise.
The private housing market, along with the commercial, has seen a surge in rental activity. People may assume it’s at the high end, penthouse, skyscraper end but in fact it’s reaching the very lowest section of the market too. Recently City Am covered a news item whereby a tiny one bedroomed Soho flat went up for rent and was snapped up half an hour after it was advertised. There was such demand that the agents for the property were already receiving bid for it as it went public. In total the whole property was 301 feet and the rent was £1500 per month, meaning the occupier is paying £5 per square foot each and every month. It’s just one story in a litany those who live in London hear regularly. Location is everything and in certain hotspots across the capital flats get snapped up almost instantly.
London’s continuing strong economy as well as the rising cost of stamp duty at the higher end of the market makes these rentals very appealing. People prefer to let rather than sell.
As an established service apartment provider, Clarendon has several portfolios in some of these prime areas across London, Clarendon knows just how popular accommodation can be. Many look to serviced apartments when they move to London, for example, so that they have a studio, one, two or three bedroom apartment to stay in while they find somewhere more permanent to live in the capital. Demand can be so high that for those moving here from another city or country, it can be confusing or mystifying to find the right place to live. A serviced apartment provides a temporary and secure home from home as a stopgap for those relocating. It means they can get the lay of the land before they invest and dive into the rental market.
The demand and popularity of London’s rental market is largely down to the city’s economic growth. It’s in huge demand and any place to live in London is attractive, with prime sites more than anywhere else.