20% fewer corporate tenants pushes rental prices down in core areas of London
Hamptons International, one of the UK’s premier residential agents, and a subsidiary of Emaar properties, has reported a noticeable decline of 20% in the number of overseas applicants looking for rental property in London, as fewer companies bring employees from overseas to work in the city.
This has had a knock-on effect on rental prices in prime parts of London, with areas such as Tower Bridge, Kensington and Knightsbridge affected to the greatest extent, with rental prices down by 15.8%, 14.3%, and 16% in the last 6 months. The agent has also witnessed a rise in UK-based applicants from other parts of Greater London and even from further afield, with interest doubling since the start of the year, with core London properties now more accessible for the first time in years to UK-based workers.
With supply continuing to outstrip demand, there is an abundance of rental property on the market, which means that many prospective tenants are taking time to choose the property they want, demonstrated by a substantial rise in prime London viewings – up by 75% from the end of December 2008.
"Existing UK employees now often have to work longer hours with a post-credit crunch reduced workforce, with many people opting to live closer to work, which is now a possibility due to market conditions pushing down prime London rents. This was previously impossible with supply very much in demand and prices at an all-time high", comments Lesley Cairns, Head of Residential Lettings.
The Country market is also suffering from a reduction in applicants from overseas short term service providers, with the very top end of the lettings market hit hard – being typically synonymous with the relocation of senior executives into the UK. Another factor has been the ongoing lack of confidence in global financial markets which has further restricted the international movement of key personnel.
Cairns continues, "A great market for tenants, but each week a property sits empty costs a Landlord money and with such an abundance of stock available, we urge landlords to be flexible and realistic about pricing. A property presented to a high standard with a landlord willing to make changes as requested by a prospective tenant will suffer better rents and fewer void periods."
For media enquiries please contact:
Lucy Gaynor, PR Manager
0207 589 9775 or gaynorl@hamptons-int.com
Jane Jorgensen, Associate Director – PR, Hamptons International
0207 589 9775 or jorgensenj@hamptons-int.com